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Tether Mints $1 Billion in USDT on Ethereum, Predicting ETF Approval
Tether on Tuesday minted $1 billion USDT tokens on the Ethereum blockchain, capitalizing on growing excitement surrounding a possible approval of the Ethereum ETF.
The market rally was driven by hopes that the U.S. Securities and Exchange Commission (SEC) will approve one Ethereum point (ETH) ETF for trading this Thursday.
Whale alert first reported the minting on Tuesday, which was answered and confirmed by Tether CEO Paolo Ardoino, who he wrote, “PSA: 1 billion USDt stock replenishment on the Ethereum network. Please note that this is an authorized but unissued transaction, which means this amount will be used as stock for next period’s issuance requests and on-chain swaps.”
This is not the first time Tether has minted tokens amid speculation of a spot ETF. Lashing minted US$1 billion USDT tokens in January amid rumors of a Bitcoin ETF in sight. The price of Ethereum (ETH) that day ranged from $2,204 to $2,294.61.
Ethereum Rise
The value of Ethereum has increased by 15% on Tuesday amid speculation, and other high-performing coins also rose. This increase is due to the greater probability of Ethereum ETF Approvalthat went from 25% to 75% after Fidelity updated your files. The current price of Ethereum is $3,726.78.
Some feel this latest minting is a pre-emptive move towards SEC approval of a spot Ethereum ETF. Ivan Sherbakov, CEO of Criptorobótica, he responded to minting, speculating that the tokens “will be used as liquidity to pump the market ahead of ETF news.”
Use cases for Tether
This increase in USDT tokens indicates that more funds will flow into crypto, especially ETH and Ethereum coins. These tokens are held in Tether treasury as “authorized but not issued”. According to Tether Transparency pagethere was $87.8 million worth of USDT on Ethereum on May 20.
This movement comes at a time when Deutsche Bank analysts highlight Tether’s lack of transparency. They warn of potentially serious consequences if the USDT stablecoin collapses, given its dominant position in the stablecoin market, which currently exceeds $160 billion in total capitalization. Tether’s market capitalization exceeds $111 billion, controlling around 70% of the stablecoin market.