Bitrabo Editorial
The interest in Spot Ethereum Exchange-Traded Funds (ETFs) has surged lately with a notable increase in capital inflows, indicating a positive sentiment towards Ethereum. This influx of funds suggests a bullish outlook for Ethereum despite recent market challenges.
Spot Ethereum ETFs Receive Positive Inflow After a Dry Spell
Spot Ethereum ETFs saw a rebound in capital inflow on Wednesday after a period of outflows and lackluster activity. This positive momentum signals a renewed interest and confidence in the digital asset.
Reports from Wu Blockchain revealed that the spot Ethereum ETFs experienced a daily inflow exceeding $5.84 million. This marked the first positive trading day in nearly two weeks, specifically within a 9-day period.
Major contributions to the total inflow came from Blackrock’s Ethereum ETF (ETHA) with over $8.39 million and Fidelity ETH ETF (FETH) with $1.25 million of capital inflow. Other ETFs like Bitwise ETH ETF (ETHW), 21Shares ETH ETF (CETH), VanEck ETH ETF (ETHV), and Franklin ETH ETF (EZET) saw no significant inflows. Additionally, Grayscale ETH ETF (ETHE) experienced an outflow of approximately $3.8 million.
With both institutional and individual investors re-entering the market, there is speculation within the community that Ethereum may be on the path to recovery.
Large ETH Sales by Whales Despite ETF Outflows
While the spot Ethereum ETFs showed signs of pessimism, ETH whales were observed selling off substantial amounts of the cryptocurrency, triggering concerns about its potential price impact.
An influential ETH sell-off was carried out by the Ethereum Foundation, a nonprofit organization supporting the ETH blockchain network. Spotonchain data revealed that the Foundation transferred over 35,000 ETH, valued at $93.8 million, to the Kraken exchange on August 23. Following this transaction, the price of ETH dropped by 9%.
Reports from Spotonchain indicated that the Foundation has historically moved Ethereum before major price declines. Despite significant sales, the organization still holds around 275,000 ETH, valued at approximately $677 million.