Spot Ethereum ETF Inflows Show Why ETH Whale Selloff Is No Big Concern

After a few weeks of slow demand, the inflows into spot Ethereum ETF have shot up again amid the global liquidity boost following the Fed rate cuts. After a poor start to the week, inflows into spot Ether ETF have resumed again. Amid the liquidity pump in the market, institutions are once again looking at the Ethereum investment product. As a result, the Ethereum price continues to hold firm despite the ETH whale sell-offs over the past week.

Spot Ethereum ETF Inflows Surge Past $85 Million

This week, the total inflows into spot Ether ETFs surged past $85 million, after several weeks of outflows. This comes as the Ethereum price shows strength surging to $2,700 and eying the next run to $3,000.

On Friday, September 27, the inflows into spot Ethereum ETF stood at $58 million with Fidelity FETH seeing the most inflows at $42.5 million. BlackRock’s ETHA came second with more than $11.5 million while Grayscale ETHE saw $10.7 million in outflows, per the data from Farside Investors.

Earlier this week, the Ether ETFs saw $80 million in outflows driving by massive outflows from Grayscale’s ETHE. However, the day after, BlackRock took the charge resuming inflows back into the investment products.

The recent inflows come when amid the constant sell-offs by Ethereum whale over the past week.

ETH Whale Selloff Continues

While the Ethereum ETF see inflows, the latest on-chain data shows that institutions have been offloading their ETH holdings in the latest price rally. As per the data from LookonChain, two major institutions offloaded Ethereum (ETH).

A wallet linked to Cumberland deposited 11,800 ETH, valued at $31.88 million, into Coinbase just seven hours ago. Similarly, ParaFi Capital withdrew 5,134 ETH (worth $13.83 million) from Lido and deposited it into Coinbase Prime six hours ago.

On the other hand, an ancient Ethereum whale wallet cashed out 12,979 ETH for $34.3 million this week, after nearly four months of hiatus. This whale originally withdrew 21,632 ETH from ShapeShift and Poloniex in 2016 when Ethereum was priced at just $7.074 per coin. Since May 2024, this wwhale has sold a total of 15,879 ETH, making $43.5 million at an average price of $2,739 per ETH.

It seems that the inflows into spot Ethereum ETFs are largely compensating for the ETH whale selloff during the past week.

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Bhushan Akolkar

Bhushan is a FinTech enthusiast with a keen understanding of financial markets. His interest in economics and finance has led him to focus on emerging Blockchain technology and cryptocurrency markets. He is committed to continuous learning and stays motivated by sharing the knowledge he acquires. In his free time, Bhushan enjoys reading thriller fiction novels and occasionally explores his culinary skills.

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