- Ethereum ETF inflows surged past $85 million after weeks of outflows, driven by market liquidity following Fed rate cuts.
- Major institutions, including Cumberland and ParaFi, sold off a combined 16,934 ETH despite renewed ETF inflows.
- Ethereum’s price held steady at $2,700, with potential for a $3,000 rally, supported by ETF demand amid ongoing whale sell-offs.
The inflows into spot Ethereum ETFs have surged this week, reversing the recent downward trend. This shift follows the Federal Reserve’s decision to cut interest rates, which has boosted liquidity in the market.
As a result, institutional investors are once again turning their attention to Ethereum-based investment products. On September 27, total inflows into spot Ethereum ETFs exceeded $85 million, marking a significant turnaround from previous weeks of outflows.
Notably, Fidelity’s FETH fund saw the highest inflows, accumulating $42.5 million. BlackRock’s ETFs came in second with $11.5 million, while Grayscale’s ETFs experienced outflows of $10.7 million, according to data from Farside Investors.
Besides, this renewed interest comes after a rocky start to the week, with Ethereum ETFs recording $80 million in outflows, primarily driven by large withdrawals from Grayscale’s ETFs. However, the situation quickly turned around, as BlackRock led the charge in resuming inflows into these investment products.
Whale Sell-Offs Continue Despite ETF Inflows
Interestingly, while Ethereum ETFs are experiencing renewed inflows, institutional holders have been selling off significant amounts of ETH. On-chain data reveals that two major institutions recently offloaded a combined 16,934 ETH.
Furthermore, a wallet linked to Cumberland deposited 11,800 ETH into Coinbase, valued at $31.88 million, while ParaFi Capital withdrew 5,134 ETH from Lido and moved it to Coinbase Prime, worth $13.83 million. These transactions indicate that despite the bullish ETF inflows, some large holders are taking profits.
Additionally, an Ethereum whale wallet that had been inactive for nearly four months recently sold 12,979 ETH, valued at $34.3 million. This whale, who originally acquired Ethereum when it was priced at just $7 per coin, has been gradually selling off their holdings since May 2024. In total, the whale has sold 15,879 ETH, making $43.5 million in profit at an average price of $2,739 per ETH.
Ethereum Price Holds Steady Amid Mixed Signals
Despite the whale sell-offs, the price of Ethereum has remained stable. The cryptocurrency is currently trading at $2,700 and appears to be positioning itself for a potential run to $3,000.
Moreover, the continued inflows into Ethereum ETFs seem to be compensating for the selling pressure from institutional holders. This suggests that while some investors are offloading their holdings, others are viewing the current market conditions as an opportunity to accumulate.
Hence, the future trajectory of Ethereum’s price remains uncertain, but the recent surge in ETF inflows is a positive sign. As market liquidity continues to improve, there is a growing possibility that Ethereum could break through the $3,000 mark in the near term. However, the ongoing whale sell-offs may continue to weigh on the market, creating a tug-of-war between bullish and bearish forces.
