"Lightning Zap" Whale Increases ETH Long by Over $10 Million as Grayscale ETF Seeks Options Trading Approval

«Lightning Zap», a known whale in the crypto markets, has significantly increased its leveraged long position in Ethereum, adding over $10 million in exposure recently. The move coincides with broader developments in the options and ETF space for crypto assets, including Grayscale's recent filing to enable options trading on its CoinDesk Crypto 5 ETF.

The Grayscale CoinDesk Crypto 5 ETF (GDLC) is seeking approval to offer physically settled options on NYSE American. The proposal aligns with recent regulatory shifts toward treating crypto assets as commodities. The ETF currently holds Bitcoin (75.20%), Ethereum (15.69%), XRP (5.41%), Solana (3.09%), and Cardano (0.61%).

Ethereum has seen increased volatility as the price dipped toward $3,050 on the daily chart. The token lost key support and now faces a critical support zone at $3,020-$3,050. A successful hold at this level could spark renewed upward momentum.

Why the Move Happened

Grayscale's filing reflects the growing demand for risk management tools in the crypto markets. Options trading on crypto ETFs is becoming more common, with BlackRock's Bitcoin ETF (IBIT) already approved for similar options.

The regulatory framework allows physically settled options on crypto ETFs, akin to those on gold and silver trusts. This provides a regulated mechanism for hedging or speculation while maintaining alignment with existing commodity rules.

How Markets Responded

Monero (XMR) has surged past $600 amid a multi-year breakout. The privacy coin rose to a record high of $686 following Dubai's ban on privacy tokens on exchanges within the Dubai International Financial Centre (DIFC).

The move was attributed to increased demand for privacy-focused assets in the face of regulatory actions. Dubai's financial regulator cited anti-money laundering and sanctions compliance risks, banning exchanges from facilitating privacy token trades.

Bitcoin and Ethereum prices were also under pressure as the broader market reacted to US jobs data and crypto options expiry jitters. Bitcoin dropped below $90,000, trading at $89,970 with a 24-hour range of $89,578 to $92,189.

What Analysts Are Watching

Analysts are closely monitoring Ethereum's next key support level, noting that a successful defense could trigger upward momentum. The 4-hour RSI is rising toward 54, suggesting some recovery potential.

Monero's surge has drawn attention due to its breakout of a multi-year range. Santiment data shows a spike in social dominance for XMR, while development activity has remained relatively low compared to trading activity.

Cardano (ADA) also showed signs of recovery, trading above $0.40 after softer-than-expected core inflation data in the US. If the uptrend stabilizes, ADA could potentially break out above $0.437 in the short term.

Grayscale's ETF also holds Solana (SOL) at 3.09% and Cardano (ADA) at 0.61%, offering broad exposure to major digital assets in a single product. The ETF's approval as a spot ETF in September 2025 marked a milestone for regulated crypto investing.

The market is watching for further developments in options trading and regulatory approvals, which could shape the next phase of crypto ETF adoption and investor confidence.