Despite a period of slow demand, the inflows into spot Ethereum Exchange-Traded Funds (ETFs) have rebounded rather dramatically. Following recent Federal Reserve rate cuts, a worldwide liquidity increase helps explain this comeback as institutional investors refocus on ETH.
Though the week started out difficult, demand for spot Ether ETFs has exploded; total inflows after several weeks of outflows exceed $85 million. Ethereum’s price shows endurance, rising to $2,700 and suggesting a possible surge towards the $3,000 mark, thereby matching this increase in investment.
Ethereum Whales Sell-off
The inflows into spot Ethereum ETFs on Friday came at $58 million; Fidelity’s FESH drove the surge by drawing $42.5 million. Data from Farside Investors shows BlackRock’s ETHA followed with over $11.5 million, while Grayscale’s ETHE suffered $10.7 million in withdrawals.
But earlier this week, the market showed a quite different picture, with $80 million in outflows mostly related to Grayscale’s ETHE. BlackRock swiftly reversed the sudden shift in attitude by leading the way back into ETH investment products.
Fascinatingly, the fresh interest in ETH ETFs coincides with a significant sell-off by Ethereum whales. Recent on-chain data from LookonChain shows that throughout this price surge, institutional investors have been selling their ETH holdings.
A few hours ago, a Cumberland-connected wallet transferred 11,800 ETH, valued at approximately $31.88 million, to Coinbase. ParaFi Capital also pulled 5,134 ETH, roughly $13.83 million, from Lido to Coinbase Prime.
To add to the mystery, an old ETH whale wallet valued at 12,979 ETH for $34.3 million this week saw its first notable movement in almost four months. This particular whale initially withdrew 21,632 ETH from ShapeShift and Poloniex in 2016, when Ethereum’s price was around $7.074 per coin. Since May 2024, it has sold 15,879 ETH overall, netting $43.5 million at an average price of $2,739 per ETH.
Recent whale activity appears to offset the increase in inflows into spot Ethereum ETFs, suggesting a potential shift in market dynamics as institutions maintain their positive outlook on Ethereum’s long-term prospects despite these significant sell-offs.
