Ethereum Classic to Host Community Call on April 25th

Galaxy Digital, a leading crypto investment firm, has recently captured the crypto community’s attention. The firm recently transferred massive Ethereum holdings to centralized exchanges. 

The move comes when the crypto market navigates significant volatility, prompting investors to question whether this signals a major sell-off or reflects Galaxy Digital’s strategic portfolio management.

Galaxy Digital’s Persistent ETH Transfers to Exchanges

On-chain data reveals Galaxy Digital has executed a series of substantial ETH transfers to major exchanges in less than a week. On the morning of April 18, 2025, the firm sent 12,500 ETH, valued at approximately $20 million, to Binance. 

Just a day earlier, on April 17, Galaxy Digital moved 12,181 ETH, worth around $19.02 million, to another centralized exchange. On April 16, an additional 12,500 ETH, valued at $20.31 million, was transferred to Binance. On April 15, another transaction involving 12,500 ETH and 5 million USDT was sent to the same platform.

In total, Galaxy Digital has moved a significant volume of ETH, worth over $100 million, out of its wallets in a short period. The scale and frequency of these transactions have sparked widespread speculation about the firm’s true intentions.

Sell-Off or Strategic Restructuring?

Large-scale ETH transfers to exchanges are often interpreted as a precursor to selling. If Galaxy Digital is offloading ETH, it could exert downward pressure on the asset’s price, particularly given the current market uncertainty.

ETH’s price has already declined significantly from its cycle peak. And Galaxy Digital’s transactions could amplify bearish sentiment among investors.

However, not all exchange transfers equate to a sell-off. Galaxy Digital might be preparing for other activities, such as providing liquidity for its financial products or executing swaps to diversify its portfolio. Still, these transfers’ sheer volume and rapid pace have raised concerns about their potential impact on ETH’s price.

Adding to the intrigue, these transactions coincide with Christine Kim’s resignation as Galaxy Digital’s Vice President of Research.

Kim, a well-known Ethereum expert, recently left the firm to pursue her ventures. While no direct evidence links her departure to the ETH transfers, the timing has fueled speculation about whether Galaxy Digital is reevaluating its stance on Ethereum.

Coinbase’s Layer-2 (L2) Network, Base, has faced intense backlash over rug-pull allegations after it promoted an unofficial memecoin that crashed by over 90%, sparking a debate about the future of memecoins and on-chain content.

The Rise And Fall Of Base’s Unofficial Memecoin

On Wednesday, Base’s official X account posted an image with the text “Base is for everyone.” Moments later, they shared a link to the on-chain social protocol Zora and the caption “Coined it,” sparking a speculative frenzy among investors.

The protocol allows users to make social media posts into tradable tokens, automatically minting them. After Base’s post was turned into a token, the crypto community quickly skyrocketed its market capitalization to $17 million.

However, online reports showed that the memecoin collapsed by around 92% after the top holders, who owned 47% of the supply, sold the memecoin just over an hour after launching.

Some community members noted that the token was “HORRIFICALLY sniped,” while on-chain data analytics platform Lookonchain highlighted that “3 wallets bought a large amount of ‘Base is for everyone’ before Base posted and sold them, making a profit of ~$666K.”

As a result, the community criticized the network’s team for the memecoin, calling the incident a rug pull and asking them to “stop launching worthless tokens that will all inevitably go to 0. You are diluting your brand and the value of real base assets.”

Zora data shows Base has earned around $81,000 from the memecoin, which has recovered from the initial sell-off with a peak market capitalization of $26 million before retracing to the $9 million-$10 million range.

Base’s Public Experiment

Base responded to the backlash, clarifying they will never sell their holdings, but they weren’t an official network token either. The team explained that they posted on Zora because they believe everyone should bring content on-chain and use the tools that make it possible.

The public on-chain experimentation opened a debate about memecoin culture and on-chain content, with Base’s creator, Jesse Pollak, weighing in.

In a series of X posts, Pollak explained that “not all coins are the same,” outlining the differences between these two types of tokens. Is On-Chain Content The Future For Creators?

According to his posts, a contentcoin is one piece of content with singular value and no expectations. Additionally, multiple of them can be created by the same person, with “big ones” potentially turning into memes.

On the contrary, a memecoin is an “aggregation of content,” with aggregated value and high expectations, where the creator “should” only create one. He also noted that big ones turn into projects.

Pollack considers that “someone has to normalize putting all of our content onchain. and i’m not afraid for it to be us. why? because in the wake of the chaos, we’ll normalize the behavior and create a better future for creators.”

Nonetheless, many users remain skeptical, with community members also criticizing Base’s post announcing investors can mint a deleted scene of the “Vitalik: An Ethereum Story” documentary, where the project’s founder, Vitalik Buterin, shows what’s in his backpack.

“Through ‘the financialization of everything’ we come to learn that most things are worthless,” the user stated.

Ethereum reached a notable milestone earlier this month when the US Securities and Exchange Commission (SEC) approved options trading for several spot exchange-traded funds (ETFs). The move is expected to increase liquidity, attract interest from institutional investors, and solidify Ethereum’s position as a major cryptocurrency.

Yet Ethereum’s smaller market cap relative to Bitcoin means it is also vulnerable to gamma squeezes, thereby increasing investor risks. BeInCrypto consulted an expert in derivatives trading and representatives from FalconX, BingX, Komodo Platform, and Gravity to analyze the potential impact of this new characteristic.

Ethereum ETF Options Gain SEC Approval

The Ethereum community rejoiced earlier this month when the SEC approved options trading for existing Ethereum ETFs. This approval marks a significant regulatory development for digital assets.

This week marked the official debut of options trading for spot Ethereum ETFs in the United States. BlackRock’s iShares Ethereum Trust (ETHA) was the first to list options, with trading commencing on the Nasdaq ISE.

Shortly after, a broader availability of options followed, including those for the Grayscale Ethereum Trust (ETHE) and the Grayscale Ethereum Mini Trust , as well as the Bitwise Ethereum ETF (ETHW), all of which began trading on the Cboe BZX exchange.

This move allows a wider range of investors, beyond crypto traders, to benefit from hedging and speculation opportunities on Ethereum’s price through options on familiar investment vehicles like ETFs without direct ownership.

The timing of this news is particularly positive, as Ethereum has been losing some ground in the market lately.

Options Trading to Bolster Ethereum’s Market Position

A significant decline in market confidence surrounded Ethereum this week, with BeInCrypto reporting its price had plummeted to its lowest point since March 2023. This drop coincided with a broader market downturn, worsened by Donald Trump’s Liberation Day.

Further fueling this bearish sentiment, the ETH/BTC ratio has reached a five-year low, highlighting Bitcoin’s growing dominance over Ethereum.

Meanwhile, large Ethereum holders are increasingly selling off substantial amounts, putting downward pressure on their prices. Ethereum’s value has fallen sharply by 51.3% since the beginning of 2025, and investor confidence has waned, as evidenced by a decrease in addresses holding at least $1 million in ETH.

With options trading now accessible to more traders, experts anticipate that Ethereum’s market position will improve.

This newfound accessibility of options trading will create additional opportunities for investors and the broader Ethereum ecosystem.

Greater Investor Access and Liquidity

The SEC’s approval of Ethereum ETFs in July 2024 was significant because it allowed traditional investors to enter the crypto market without directly holding the assets. Now, with options trading also available, these benefits are expected to be even greater.

The Ethereum ETF market will naturally become more liquid with increased participation through options trading.

High Trading Volumes and Hedging Demands

‭The SEC’s fresh approval of options trading for Ethereum ETF investors suggests that the market will likely initially experience a high trading volume. As a result, market makers must be prepared.

An increase in call options will require institutional market makers to hedge by buying more Ethereum to meet demand.

Ethereum will also secure a unique advantage, particularly in institutional trading, enhancing its perceived quality and driving optimism among key market participants.

Yet, rapid surges in options trading could also have unintended consequences on Ethereum’s price, especially in the short run.

Will Investors Suffer a Gamma Squeeze?

As market makers rush to acquire more of the underlying asset in case of a higher volume of options calls, Ethereum’s price will naturally increase. This situation could lead to a pronounced gamma squeeze.

When market makers hedge their positions in this scenario, the resulting buying pressure would create a positive feedback loop. Retail investors will feel more inclined to join in, hoping to profit from Ethereum’s rising price.

The implications of this scenario are especially pronounced for Ethereum, considering its market capitalization is notably smaller than that of Bitcoin.

Retail traders’ aggressive buying of ETHA call options could compel market makers to hedge by acquiring the underlying ETHA shares, potentially leading to a more pronounced effect on the price of ETHA and, by extension, Ethereum.

Meanwhile, Grant predicts arbitrage-driven flows will further exacerbate price swings.

Arbitrage Opportunities Expected to Emerge

Experienced investors in options trading may pursue arbitrage to gain profits and reduce risk exposure.

Arbitrage involves exploiting price differences for the same or nearly identical assets across different markets or forms. This is done by buying in the cheaper market and selling in the more expensive one.

According to Grant, traders will increasingly look for and exploit these price differences as the market for ETH options on different platforms develops.

While arbitrage activity is expected to refine pricing and liquidity within the Ethereum options market, the asset continues to operate under the shadow of Bitcoin’s established market leadership.

Will Landmark Options Approval Help Ethereum Close the Gap on Bitcoin?

Though Ethereum achieved a major landmark this week, it faces competition from a major rival: Bitcoin.

In late fall of 2024, options trading started on BlackRock’s iShares Bitcoin Trust (IBIT), becoming the first US spot Bitcoin ETF to offer options. Though not even a year has passed since the original launch, options trading on Bitcoin ETFs experienced strong trading volumes from retail and institutional investors.

According to Kadan Stadelmann, Chief Technology Officer of Komodo Platform‬, options trading for Ethereum ETFs will be comparatively underwhelming. Bitcoin will still be the cryptocurrency of choice for investors.

‭Consequently, his outlook does not include Ethereum’s market position surpassing Bitcoin’s in the immediate term.

While that may be the case, options trading doesn’t harm Ethereum’s prospects; it only strengthens them.

Can Ethereum’s Options Trading Era Capitalize on Opportunities?

‭Ethereum is now the second cryptocurrency with SEC approval for options trading on its ETFs. This single move will further legitimize digital assets for institutions, increasing their presence in traditional markets and boosting overall visibility.

Despite recent significant blows to Ethereum’s market position, this news is a positive development. Although it might not be sufficient to surpass its primary competitor, it represents a step in the right direction.

As investors get used to this new opportunity, their participation level will reveal how beneficial it will be for Ethereum.

Ethereum ETFs remained completely stagnant, while spot Bitcoin ETFs saw a solid net inflow of $108 million led by BlackRock's IBIT ETF with $80.96 million. Despite the fluctuations on the market, all nine spot Ethereum ETFs reported zero net flows, indicating a lack of investor confidence or engagement. There is no more pronounced difference between the activity of Ethereum ETFs and Bitcoin ETFs. 

Even though the market is starting to recover, Ethereum is still being overlooked because companies like Fidelity VanEck and Grayscale are witnessing ongoing capital movement in Bitcoin-related products. Even though Ethereum has been the second-largest cryptocurrency for a long time, this stagnation shows that the asset's story is currently not very compelling to institutions.  Chart by TradingView">

According to Ethereum's price chart, the state of affairs mirrors the ETF's lack of activity. In an effort to create temporary stability close to the $1,580 region, ETH is still trading in a tight descending wedge. Nevertheless it has not demonstrated any noteworthy breakout potential. The asset's continued strong bearish trend is demonstrated by the fact that it is still well below the 50, 100 and 200 EMA levels ($1,800, $2,267 and $2,568, respectively). 

Additionally volume has been gradually declining, indicating that institutional and retail participants are not as interested or motivated. The RSI shows that ETH is still hovering close to oversold territory without producing a real reversal signal, and the weak bullish attempts are routinely rejected. 

As Bitcoin absorbs all the capital attention, Ethereum is essentially stagnating due to zero flows into ETH ETFs and no discernible buying pressure on the spot market. ETH might keep falling behind unless there is a significant fundamental catalyst that materializes soon, such as the approval of ETF staking or a favorable regulatory change.

Altcoins may see a resurgence in the second quarter of 2025 as regulations for digital assets continue to improve, according to Swiss bank Sygnum.

In its Q2 2025 investment outlook, Sygnum said the space has seen “drastically improved” regulations for crypto use cases, creating the foundations for a strong alt-sector rally for the second quarter. However, it added that “none of the positive developments have been priced in.”

In April, Bitcoin dominance reached a four-year high, signaling that crypto investors are rotating their funds into an asset perceived to be relatively safer.

But Sygnum believes regulatory developments in the US, such as President Donald Trump’s establishment of a Digital Asset Stockpile and advancing stablecoin regulations, could propel broader crypto adoption.

“We expect protocols successful in gaining user traction to outperform and Bitcoin’s dominance to decline,” Sygnum wrote.

Increased focus on economic value ignites competition

Sygnum also said that competition would increase as the market focuses on economic value. Increased competition in a market often results in better products, ultimately benefiting consumers:

Sygnum added that while high-performance blockchains address limitations of the Bitcoin, Ethereum and Solana blockchains, these chains find it challenging to achieve meaningful adoption and fee income.