The cryptocurrency market is witnessing a surge of activity from long-dormant Ethereum wallets as anticipation builds for the launch of spot Ethereum ETFs. With the SEC giving preliminary approval for at least three issuers to begin trading as early as July 23, early Ethereum investors are making strategic moves that could shape the broader altcoin landscape for months to come.
TL;DR
- SEC grants preliminary approval for spot ETH ETFs; trading expected to begin July 23
- ICO-era Ethereum wallets holding millions in ETH are awakening after years of dormancy
- SEC Commissioner Hester Peirce opens the door to potential ETH ETF staking features
- Ethereum surges past $3,500, gaining over 14% in a week
- 21Shares files updated S-1 revealing sponsor fees for its spot ETH ETF product
Dormant ICO Wallets Make Their Move
Blockchain analytics platform Spot On Chain flagged significant activity from two Ethereum whale wallets on July 17. The wallets collectively transferred 3,631 ETH — worth approximately $12.5 million at the time — to the Kraken exchange. One wallet, identified as 0xdb3, moved 2,631 ETH valued at $9.01 million, while another wallet, 0xbf5, sent 1,000 ETH worth $3.46 million.
What makes these transfers remarkable is the history behind them. The 0xbf5 wallet originally received its ETH from an ICO participant known as 0x510 during Ethereum’s Genesis event in 2015. That wallet still holds approximately 49,000 ETH, currently worth around $171 million. The 0xdb3 wallet has been active since June 8, systematically moving a cumulative 17,886 ETH — roughly $65 million — to centralized exchanges over several weeks.
These movements signal that early Ethereum adopters, some of whom have held their tokens for nearly a decade, are repositioning ahead of what many consider the most significant institutional milestone for the asset since its inception.
Spot ETH ETF Countdown: July 23 Launch Expected
The SEC has given preliminary approval for at least three companies to launch spot Ethereum ETFs, with trading expected to begin on July 23, according to reports from Reuters and Cointelegraph. Issuers must submit their final documentation by the end of the week, and if all goes smoothly, the ETFs will be listed on major U.S. exchanges including Nasdaq and the New York Stock Exchange.
21Shares submitted an updated S-1 filing on July 17, revealing its sponsor fee structure for the upcoming spot Ethereum ETF. Meanwhile, SEC filings show that Jane Street Capital, J.P. Morgan Securities, and Virtu Americas have each signed Authorized Participant Agreements for the Franklin Ethereum ETF, indicating robust institutional infrastructure is in place.
SEC Commissioner Peirce Signals Staking Could Be Revisited
In a development that could have far-reaching implications for Ethereum and the broader altcoin market, SEC Commissioner Hester Peirce indicated on July 17 that staking within Ethereum ETFs remains “open for reconsideration.” Speaking to reporters, Peirce — long known for her crypto-friendly stance — drew parallels to how features of Bitcoin exchange-traded products evolved over time after initial launch.
“I think certainly something like staking, or any feature of the product — we saw that on the Bitcoin exchange traded products too, right? There were features of those products that evolved,” Peirce stated. Her comments suggest that while the initial spot ETH ETFs may launch without staking functionality, the door remains open for future amendments that could allow ETF providers to stake their ETH holdings and pass yield to investors.
This potential for staking integration has significant implications. Ethereum’s proof-of-stake consensus mechanism generates annual yields of roughly 3-4%, and allowing ETF providers to capture this yield could make Ethereum ETFs substantially more attractive to institutional investors compared to their Bitcoin counterparts.
Altcoin Market Responds to Ethereum Momentum
Ethereum’s price action reflects the growing optimism. ETH traded at $3,388 on CoinMarketCap’s July 17 snapshot, with some exchanges reporting prices above $3,500 during intraday trading. The asset gained over 14% in the preceding week, fueled by ETF speculation and broader market tailwinds.
Solana also posted gains, trading around $155-162 on July 17, up approximately 2.4% in 24 hours. Analysts have begun speculating that Solana could be the next candidate for a spot crypto ETF, though such approval likely remains distant.
Bitcoin itself rallied from $56,680 on July 9 to over $65,000 by July 17, with futures open interest surging from $26.97 billion to $33.25 billion over the same period. The options market saw similar growth, with open interest rising from $15.94 billion to $20.11 billion, and over 65% of positions being calls — a clear signal of bullish sentiment pervading the market.
Political Tailwinds for Crypto
The crypto industry also received a political boost on July 15 when former President Donald Trump selected pro-crypto Ohio Senator J.D. Vance as his vice presidential running mate. Vance has been a vocal advocate for cryptocurrency regulation that fosters innovation rather than restricting it, adding another layer of optimism to an already buoyant market.
Why This Matters
The convergence of dormant whale activity, imminent ETF launches, regulatory openness to staking, and political support creates a uniquely bullish environment for Ethereum and the broader altcoin market. The awakening of ICO-era wallets suggests that long-term holders believe the ETF launch represents a pivotal moment — one that warrants taking profits or repositioning. Meanwhile, the institutional infrastructure being built around Ethereum ETFs, with major authorized participants like Jane Street and J.P. Morgan signing on, signals that traditional finance is fully committing to the asset class. For altcoin investors, Ethereum’s ETF success could serve as a blueprint and catalyst for future altcoin ETF approvals, potentially unlocking a new era of institutional capital flowing into the broader crypto market.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments carry significant risk. Always conduct your own research before making investment decisions.
0xbf5 wallet still holding 49K ETH from the 2015 genesis and they only moved 1K to kraken. the other 48K is sitting there waiting
held since 2015 genesis and they move to kraken right before the ETF. either cashing out profits or rebalancing, both are rational moves for a 9 year hold
3,631 ETH moved to exchanges ahead of the ETF launch. $12.5M in sell pressure from just two wallets. wonder how many more are repositioning
Hester Peirce opening the door to staking in the ETH ETF would be huge. currently the yield is just lost value for ETF holders
0xdb3 systematically moving 17,886 ETH worth $65M to CEXs since june 8. this wasnt a panic move it was a structured exit plan
ETH surging 14% past $3,500 while ICO whales quietly distribute to exchanges. classic smart money selling into retail strength
21Shares filing updated S-1 with sponsor fees. the race to launch is real. july 23 cant come fast enough