Binance experienced a surge in Ethereum buying as traders aggressively acquired the top altcoin in anticipation of a spot Ether ETF approval.
The demand was driven by optimism about the ETF’s potential approval, leading traders to buy Ethereum through market orders, despite higher prices. CryptoQuant observed a record-breaking spike in Ethereum’s Net Taker Volume on Binance during this period.
Binance Traders React to Ethereum ETF Speculation
The Net Taker Volume metric, which measures the difference between buying and selling volume via market orders prioritizing immediate execution, surged on Binance. This increase, highlighted in CryptoQuant’s analysis, stemmed from speculation surrounding the anticipated approval of a spot Ether ETF. ETF Specialist James Seyffart’s prediction of a 75% likelihood of approval added fuel to the buying frenzy.
In response, Binance traders aggressively took long positions in Ethereum using market orders. During a single candle period, Taker Buy Volume exceeded Taker Sell Volume by an impressive $530 million, marking the highest Net Taker Volume recorded for Ethereum on Binance.
This surge indicates strong bullish sentiment among Binance traders, who were eager to secure Ethereum at higher prices in anticipation of a potential price surge if the Ethereum ETF receives approval.
“Binance traders are making taker orders on the Ethereum ETF news like there is no tomorrow,” reflecting the fervor surrounding the potential ETF approval.
Net_Taker_Volume on Binance. Source: CryptoQuant
Analysts Reassess Probability of Ethereum ETF Approval
Eric Balchunas, a senior analyst at Bloomberg, alongside ETF Specialist James Seyffart, has revised their estimation for the approval likelihood of a spot Ether ETF from 25% to 75%. Their rationale centers around increased political pressure on the US Securities and Exchange Commission (SEC).
They argue that the SEC’s previous stance showed minimal engagement with ETF applicants, indicating a reluctance to seriously consider these applications. However, Balchunas now suggests that external political pressure on the SEC may prompt a reassessment of the Ethereum ETF’s prospects.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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