Binance is seeing a massive buyer demand for Ethereum, fueled by optimism surrounding the potential approval of a much-anticipated spot Ether ETF, prompting traders to aggressively accumulate the asset using market orders, even at higher prices.
This was spotted by CryptoQuant after a massive spike in the Net Taker Volume for Ethereum on the popular exchange, which hit an all-time high.
The Net Taker Volume metric measures the difference between buying and selling volume facilitated by market orders, which are orders that prioritize immediate execution over price.
This surge in Net Taker Volume, according to CryptoQuant’s latest analysis, was likely driven by the speculation of a highly anticipated approval of a spot Ether ETF by ETF Specialist James Seyffart, who stated a 75% likelihood of being greenlighted.
In response to this news, Binance traders have aggressively taken long Ethereum positions using market orders. Within a single candle, the Taker Buy Volume exceeded the Taker Sell Volume by a whopping $530 million, marking the largest single-candle Net Taker Volume ever recorded on Binance for Ethereum.
This indicates that Binance traders were extremely bullish on Ethereum and were willing to pay higher prices for immediate execution of their buy orders, likely in anticipation of a potential price surge if an Ethereum ETF does get approved.
“Binance traders are making taker orders on the Ethereum ETF news like there is no tomorrow.”
Along with Seyffart, Eric Balchunas, another senior analyst at Bloomberg, increased his previously estimated probability for the approval of a spot Ether ETF from 25% to 75%.
The basis of their argument was the heightened political pressure on the US Securities and Exchange Commission (SEC) as a contributing factor. They also pointed out that the regulatory agency’s previous stance appeared to show minimal engagement with the applicants seeking approval for these ETFs. This lack of engagement suggested a reluctance on the part of the SEC to consider these applications seriously.
However, Balchunas now believes that the SEC may be facing external pressure, potentially from political sources, which has led him to reassess the likelihood of an Ethereum ETF.
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