Amid a period of sluggish demand, the spot Ethereum ETF has witnessed a resurgence in inflows, thanks to the global liquidity boost after the Fed rate cuts. Despite a slow start to the week, investments into the spot Ether ETF are back on track due to the liquidity injection in the market, drawing institutional interest once more. Consequently, the Ethereum price remains steady despite recent sell-offs by ETH whales.
Spot Ethereum ETF Inflows Exceed $85 Million
This week, the total inflows into spot Ether ETFs surpassed $85 million, following several weeks of outflows. This positive trend coincides with the strength of the Ethereum price hitting $2,700 and aiming for the next milestone of $3,000.
As of Friday, September 27, spot Ethereum ETF inflows reached $58 million, with Fidelity FETH receiving the highest inflows at $42.5 million. BlackRock’s ETHA followed with over $11.5 million, while Grayscale ETHE experienced outflows of $10.7 million, according to data from Farside Investors.
Earlier in the week, Ether ETFs saw $80 million in outflows primarily due to massive withdrawals from Grayscale’s ETHE. However, the situation reversed the following day when BlackRock led the resurgence in inflows into these investment products.
The recent influx of funds contrasts with the continuous sell-offs by Ethereum whales in the past week.
ETH Whale Selloff Continues
Although spot Ethereum ETFs are experiencing inflows, recent on-chain data indicates that institutions have been shedding their ETH holdings amidst the latest price surge. LookonChain’s data revealed that two major institutions offloaded Ethereum.
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 ancient Ethereum whale wallet cashed out 12,979 ETH for $34.3 million this week after a four-month hiatus. This whale originally withdrew 21,632 ETH in 2016, when Ethereum was priced at $7.074 per coin. Since May 2024, this whale has sold a total of 15,879 ETH, generating $43.5 million at an average price of $2,739 per ETH.
The increase in spot Ethereum ETF inflows appears to balance out the recent ETH whale sell-off activity, reassuring market participants.