Ethereum, the second largest cryptocurrency, is attracting attention as investors are showing a renewed interest in historical Spot Ethereum Exchange-Traded Funds (ETFs). After the market closed on Wednesday, substantial amounts of money began to flow into these products.
This influx is seen as a positive sign for ETH, indicating that even after recent market challenges, crypto fans are growing more hopeful about the long-term prospects of the altcoin.
Spot Ethereum ETFs Experience Their First Positive Inflow in Nearly Two Weeks
On Wednesday, the spot Ethereum ETFs recorded a positive inflow once more, marking a shift from a period of capital outflows and inactivity. This suggests that investors are regaining interest and confidence in the digital asset as it begins to recover.
As reported by Wu Blockchain, a well-known source in the cryptocurrency and blockchain sector, the spot Ethereum ETFs saw a total inflow of more than $5.84 million for the day. This surge in inflows represents the first positive trading cycle in almost two weeks, particularly over the last 9 days.
Reports indicate that Blackrock’s Ethereum ETF (ETHA) played a crucial role in this total inflow, attracting over $8.39 million in capital. Additionally, the Fidelity ETH ETF (FETH) also reported a positive inflow of around $1.25 million.
Conversely, other ETFs from asset management firms, including Bitwise ETH ETF (ETHW), 21Shares ETH ETF (CETH), VanEck ETH ETF (ETHV), and Franklin ETH ETF (EZET), registered no inflows at all. At the same time, Grayscale ETH ETF (ETHE) experienced an outflow of about $3.8 million.
With both institutional and retail investors seemingly returning to the market, there are speculations within the community that this trend could signify the beginning of a recovery phase for Ethereum.
Major Sell-Offs by ETH Whales Amidst Outflows in Spot ETFs
While spot Ethereum ETFs were seeing negative sentiments, numerous ETH whales have been offloading their assets significantly. This massive sell-off of ETH has led to a considerable amount of speculation in the crypto community regarding its effects on pricing.
One of the notable recent sales was executed by the Ethereum Foundation, a nonprofit organization created to support the Ethereum blockchain network and its ecosystem both financially and otherwise.
According to data from Spotonchain, the Foundation strategically moved over 35,000 ETH, valued at $93.8 million, to the Kraken cryptocurrency exchange based in San Francisco on August 23. Shortly after this large transaction, ETH’s price fell by 9%.
Spotonchain emphasized that the Foundation has consistently sold Ethereum ahead of major price drops in 2024. Despite these significant sales, the Foundation still holds approximately 275,000 ETH, which is worth an impressive $677 million.
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