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Tether Mints $1 Billion USDT on Ethereum, Expecting ETF Approval
Tether minted $1 billion USDT tokens on the Ethereum blockchain on Tuesday, capitalizing on the growing buzz around a potential spot ETF approval on Ethereum.
The market recovery was driven by the hope that the US Securities and Exchange Commission (SEC). will approve an Ethereum spot (ET) ETF trading this Thursday.
First the whale alert reported the minting on Tuesday, which was responded to and confirmed by Tether CEO Paolo Ardoino, who he wrote“PSA: 1 billion USDt inventory replenishment on the Ethereum network. Please note that this is a permissioned but unissued transaction, meaning that this amount will be used as inventory for issuance requests and on-chain trades of the subsequent period.
This is not the first time Tether has minted tokens in spot ETF speculation. Bind minted 1 billion dollars USDT token in January amid rumors of a spot Bitcoin ETF. The price of Ethereum (ETH) ranged from $2,204 to $2,294.61 that day.
Ethereum on the rise
The value of Ethereum has increased by 15% Amid speculation, other top-performing coins also rose on Tuesday. This increase is due to the increased probability of a Ethereum ETF approvedthat went by 25% to 75% after Fidelity updated his documents. The current price of Ethereum is $3,726.78.
Some think this most recent minting is a preemptive move for the SEC’s approval of an Ethereum spot ETF. Ivan Sherbakov, CEO of Cryptorobotics, He answered at minting, speculating that the tokens “will be used as liquidity to pump up the market ahead of the ETF news.”
Use cases for Tether
This increase in USDT tokens indicates that more funds will flow into cryptocurrencies, especially ETH and Ethereum coins. These tokens are stored in Tether treasure as “authorized but not released”. According to Tether Transparency pageas of May 20, there was $87.8 million worth of USDT on Ethereum.
This movement comes as analysts at Deutsche Bank highlight Tether’s lack of transparency. They warn of potentially serious consequences if the USDT stablecoin were to collapse, given its dominant position in the stablecoin market, which currently exceeds $160 billion in total capitalization. Tether’s market capitalization exceeds $111 billion, controlling approximately 70% of the stablecoin market.