Key Points
- Jump crypto has unstaked and sold a significant portion of its Ethereum holdings.
- The firm still retains a substantial amount of Ethereum, with over 34 million ETH staked.
Jump Trading, a crypto trading firm, has been actively managing its Ethereum (ETH) holdings recently.
The firm has been unstaking its ETH throughout a week of declining Ethereum prices.
Jump Crypto Unstakes 120K ETH
Data from Lookonchain and Arkham Intelligence reveals that Jump crypto has moved over 120,000 staked Ethereum, worth approximately $314.8 million at the time of transfer.
These movements began a day after the launch of spot Ether exchange-traded funds (ETFs) in the United States.
Most of these ETH tokens were unstaked from a specific redeem address. Despite this significant movement, the firm still holds a considerable amount of Ethereum, with data showing it still holds 37,604 ETH tokens, valued at around $104 million.
Reasons for Jump Trading’s Unstaking
Lookonchain suggests that Jump Trading’s recent unstaking of Ethereum is related to ETH that was exploited in a hacking incident over a year ago and regained through strategic counter-trading efforts.
The exact reason for the recent sale of this unstaked Ethereum is not clear. However, it’s noteworthy that Jump Trading is currently under investigation by the U.S. Commodity Futures Trading Commission (CFTC), although specific charges have not been revealed.
The unstaking and subsequent sale coincided with a significant drop in Ethereum’s price, leading to speculation about whether these actions were a response to regulatory scrutiny or other external pressures.
Since Jump Trading reportedly began selling the ETH on July 24th, the price has fallen by more than 30%.
Impact on Staked Ethereum
Jump crypto’s recent unstaking could potentially affect the Ethereum staking landscape, but a large portion of it remains staked.
According to Dune Analytics, over 34 million ETH, representing more than 27% of the total circulating supply, were still staked. Lido Finance remains the dominant staking platform, holding over 28% of the staked ETH.
Jump Trading’s unstaking actions have sparked various reactions within the cryptocurrency community. An observer on X (formerly Twitter) suggested that Jump crypto’s departure from Ethereum staking might be a bullish signal for the market, describing the firm as “parasitic” and asserting that the industry could benefit from its reduced influence.
