Following a period of sluggish demand, there has been a resurgence in inflows into spot Ethereum ETF amid the global liquidity boost after the Fed rate cuts. Despite a slow start to the week, the inflows into spot Ether ETF have picked up again, driven by the market’s liquidity pump, which has reignited institutional interest in the Ethereum investment product. Consequently, the Ethereum price remains steady despite ETH whale sell-offs in the past week.
Spot Ethereum ETF Inflows Reach Over $85 Million
In the current week, total inflows into spot Ether ETFs have exceeded $85 million, marking a significant surge after weeks of outflows. This coincides with Ethereum’s price showing strength by reaching $2,700 and targeting the next milestone of $3,000.
As of Friday, September 27, inflows into spot Ethereum ETF amounted to $58 million, with Fidelity FETH leading with inflows of $42.5 million. BlackRock’s ETHA followed with over $11.5 million in inflows, while Grayscale ETHE experienced outflows of $10.7 million, according to data from Farside Investors.
Earlier in the week, Ether ETFs witnessed $80 million in outflows, primarily driven by substantial outflows from Grayscale’s ETHE. However, the situation reversed the next day as BlackRock initiated inflows back into the investment products.
The recent surge in inflows contrasts with continuous sell-offs by Ethereum whales over the previous week.
ETH Whale Selloff Persists
While Ethereum ETFs experience inflows, recent on-chain data indicates that institutions have been offloading their ETH holdings during the latest price rally. LookonChain data reveals that two major institutions have been selling Ethereum (ETH).
A wallet associated with Cumberland deposited 11,800 ETH valued at $31.88 million into Coinbase seven hours ago. Similarly, ParaFi Capital withdrew 5,134 ETH (worth $13.83 million) from Lido and transferred it to Coinbase Prime six hours ago.
Meanwhile, an aged Ethereum whale wallet liquidated 12,979 ETH for $34.3 million this week after a hiatus of nearly four months. Initially withdrawing 21,632 ETH from ShapeShift and Poloniex in 2016 at an ETH price of $7.074 per coin, this whale has since sold a total of 15,879 ETH, generating $43.5 million at an average price of $2,739 per ETH.
The ongoing influx of funds into spot Ethereum ETFs appears to offset the impact of the ETH whale selloff during the past week.
This piece was originally published on CoinGape.