In a notable move that has caught the attention of the crypto community, the U.S. government transferred a massive Ethereum (ETH) reserve on Monday, July 1. The transfer has sparked speculations around a potential ETH selloff, which could mirror the downtrend Bitcoin (BTC) suffered amid selloffs by German and U.S. governments. Moreover, the anticipated launch of Spot Ethereum ETFs this month further fuels such concerns.
U.S. Government Shifts Ethereum Reserve
According to Arkham Intelligence, the U.S. government recently transferred 3,375 Ethereum. This reserve, valued at approximately $11.75 million, was shifted to an unidentified address on Monday. The timing of the transfer is particularly significant as it comes ahead of the anticipated approval of the Spot Ether ETF S-1 filings.
Last week, the U.S. Securities and Exchange Commission (SEC) returned these filings to major applicants including BlackRock, Fidelity, and VanEck. Hence, analysts predict that applicants could submit further S-1 amendments this week. Meanwhile, they have offered a potential approval date for mid-July.
The movement of such a substantial amount of Ethereum before these key events has led to concerns that the U.S. government might be preparing to capitalize on the Ethereum ETF S-1 approval news. In case the government sells its Ethereum holdings, it could adversely influence the ETH price just like it did for Bitcoin.
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