Fear and uncertainty have engulfed the crypto market as the SEC takes legal action against prominent exchanges Binance and Coinbase. However, amid the turbulence, there are indications that institutional investors, whales and so-called smart money are capitalizing on the market dip. Notably, Cumberland, a subsidiary of DRW, a reputable and diversified trading firm, has emerged as one of these astute investors.
According to Lookonchain, a prominent crypto analytics platform, Cumberland made strategic moves following the news of the SEC lawsuit against Binance. On June 6, Lookonchain reported that the firm swiftly withdrew a staggering sum of 67.9 million USDC from Circle, redirecting 67.1 million USDC to Coinbase.
Adding to the previous report, Lookonchain provided further insights today, suggesting that Cumberland seized the opportunity presented by the SEC's actions against Binance and Coinbase. Notably, Cumberland withdrew 20,000 ETH, equivalent to a substantial $37 million, from Coinbase. They also pulled out 4,850 ETH, valued at approximately $9 million, from Binance. Cumberland also withdrew various other tokens, including AXS, SHIB, COMP, LINK, CRV, AAVE and RNDR, further strengthening their position on the market.
These moves by a major trading firm indicate a strategic response to the prevailing circumstances. Such actions may serve as a confidence booster for other market participants, as institutional investors appear to see value in purchasing digital assets at a discounted price.