Spot Ethereum ETF Inflows Surge Amid Global Liquidity Boost
After a period of slow demand, the inflows into spot Ethereum ETF have surged once again, driven by a global liquidity boost following the recent Fed rate cuts. Despite a lackluster start to the week, inflows into spot Ether ETF have picked up momentum, with institutions showing renewed interest in the Ethereum investment product. This surge in inflows has helped the Ethereum price to remain stable, even in the face of significant sell-offs by ETH whales over the past week.
According to data from Farside Investors, the total inflows into spot Ether ETFs have surpassed $85 million this week, marking a significant turnaround from several weeks of outflows. The Ethereum price has also shown strength, climbing to $2,700 and setting its sights on the next milestone of $3,000. On Friday, September 27, inflows into spot Ethereum ETF reached $58 million, with Fidelity FETH leading the way with $42.5 million in inflows. BlackRock’s ETHA followed closely behind with over $11.5 million, while Grayscale ETHE saw $10.7 million in outflows.
Earlier in the week, Ether ETFs experienced $80 million in outflows, largely driven by significant sell-offs from Grayscale’s ETHE. However, the tide turned the following day, with BlackRock leading the charge and bringing inflows back into the investment products. This resurgence in inflows comes at a time when Ethereum whales have been actively offloading their holdings during the recent price rally.
Recent on-chain data from LookonChain reveals that two major institutions have been selling off their ETH holdings. A wallet linked to 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. Additionally, an ancient Ethereum whale wallet cashed out 12,979 ETH for $34.3 million this week, after a hiatus of nearly four months. This whale had originally withdrawn 21,632 ETH in 2016 when Ethereum was priced at just $7.074 per coin and has since sold a total of 15,879 ETH, making $43.5 million at an average price of $2,739 per ETH since May 2024.
Despite the ETH whale sell-offs, the inflows into spot Ethereum ETFs appear to be compensating for the downward pressure on the Ethereum price. The resilience of the Ethereum market in the face of these sell-offs underscores the confidence that institutions have in the long-term potential of the cryptocurrency. As the global liquidity boost continues to drive inflows into the Ethereum investment products, the outlook for Ethereum remains positive, with investors eyeing further gains in the near future.