Following a period of sluggish demand, there has been a notable increase in the inflows into spot Ethereum ETF, spurred by the global liquidity boost resulting from the Fed rate cuts. Despite a lackluster start to the week, the inflows into spot Ether ETF are once again on the rise. Institutional interest in the Ethereum investment product has reignited amidst the liquidity surge in the market, leading to the Ethereum price maintaining its stronghold despite ETH whale sell-offs in recent days.
In a noteworthy surge, the total inflows into spot Ether ETFs have exceeded $85 million this week, following weeks of outflows. This growth aligns with the Ethereum price exhibiting strength by surpassing $2,700 and setting sights on the $3,000 mark.
As of Friday, September 27, Fidelity FETH witnessed the highest inflows at $42.5 million out of the $58 million total inflows into spot Ethereum ETF, with BlackRock’s ETHA following closely at over $11.5 million. Grayscale ETHE experienced outflows amounting to $10.7 million according to data from Farside Investors.
Earlier in the week, Ether ETFs witnessed significant outflows totaling $80 million, primarily driven by substantial outflows from Grayscale’s ETHE. However, the trend reversed the following day with BlackRock leading the way in bringing the inflows back into the investment products.
The recent surge in inflows coincides with Ethereum whale sell-offs that have persisted over the past week.
In contrast to the inflows into Ethereum ETFs, recent on-chain data indicates that institutions have been divesting their ETH holdings during the latest price rally. Notably, a wallet associated with Cumberland deposited 11,800 ETH valued at $31.88 million into Coinbase, while ParaFi Capital withdrew 5,134 ETH worth $13.83 million from Lido and deposited it into Coinbase Prime.
Concurrently, an ancient Ethereum whale wallet made a significant cashout of 12,979 ETH for $34.3 million this week after a hiatus of nearly four months. This whale, which originally withdrew 21,632 ETH in 2016, has been gradually selling off its holdings, with a total of 15,879 ETH sold since May 2024, accumulating $43.5 million at an average price of $2,739 per ETH.
Despite the ongoing ETH whale selloff, it appears that the inflows into spot Ethereum ETFs are effectively offsetting the impact, demonstrating that the market remains resilient.