Early Ethereum Investor Acquires $24M in ETH Before SEC Ruling

James Fickel, an early Ethereum investor, bought $24.4 million in ETH via several transactions ahead of the SEC’s Ether ETF decision, potentially anticipating approval.

An Ethereum whale made a massive move ahead of the SEC’s impending verdict on the Vaneck Spot Ether ETF. 

Founder of the Amaranth Foundation and well-known for his early investments in Ethereum (ETH), James Fickel has recently completed a substantial acquisition of ETH. 

Is James Fickel Betting On Ether ETF?

As the value of Ethereum surpassed $3,800 on May 23, 2024, Fickel acquired 2,642 ETH for an estimated $24.4 million. 

Spot On Chain data indicates that he utilized $10.1 million USDC and other cryptocurrency reserves, including Wrapped Bitcoin (WBTC). 

However, Fickel carried out this transaction at an average cost of $3,820 per ETH. 

Furthermore, Fickel’s most recent acquisition is an element of a broader strategy that has seen him amass 14,494 ETH in the preceding three days. 

Furthermore, he funded his recent acquisitions, which amounted to $53.3 million in total, with a blend of 26.1 million USDC and 390 WBTC, purchased at an average of $3,675 per ETH. 

In light of the SEC’s decision regarding the Ether ETF, Fickel’s massive purchasing spree demonstrates his bullish outlook on Ethereum. 

However, Fickel’s confidence in Ethereum is not unprecedented. Since December 30, 2023, he has maintained a strategic stance regarding the ETH/BTC exchange rate. 

During this time frame, he engaged in borrowing and exchanging 2,741 WBTC for 50,688 ETH for 0.054 per ETH in Bitcoin, thereby substantiating his conviction regarding the superior potential of Ethereum. 

Moreover, in light of the approaching May 23 deadline for the SEC’s decision on Ether ETFs, his accumulation reflects the increasing market optimism. 

A highly anticipated SEC decision concerns the Vaneck Ethereum ETF. 

As a result, numerous investors, including Fickel, stake their interests in anticipation of a possible approval. 

Moreover, introducing an Ether ETF could potentially increase the value of Ethereum by substantially expanding its accessibility to institutional investors. 

Ethereum ETF Approval In Jeopardy

However, the SEC’s decision has not been well received by all, which adds considerable ambiguity to the approval process for an Ether ETF. 

Financial analyst Charles Gasparino recently identified substantial risks, indicating that regulatory obstacles may cause delays or even suspend the approval procedure. 

Gasparino described the approval process for Ethereum ETFs, stating that issuance requires two approvals. 

Depending on the nature of the issuance, these consist of one from the Trading and Markets (T&M) division for trading purposes and another from either Corporate Finance (Corp Fin) or Investment Management (Inv Mgmt). 

Furthermore, a regulatory insider emphasized that a specific deadline applies solely to the T&M approval process. 

This means that delays in issuance approval from Corp Fin or Inv Mgmt may still occur, even if T&M approval is granted. 

Meanwhile, Bernstein analysts Mahika Sapra and Gautam Chhugani estimate that the approval of a Spot Ethereum ETF could cause the price of Ethereum to increase by 75%. 

As a result, the price of ETH may potentially increase to $6,600. 

They predict a similar outcome for Ethereum based on the SEC’s January approval of comparable Bitcoin funds, which precipitated a 75% increase in BTC’s value in the following weeks. 

ETH investors, such as Fickel, stand to gain substantially from the anticipated Ether ETF introduction if the prediction materializes.