Ethereum Whales have been busy in the market as on-chain data shows these investors have been busy accumulating the second-largest crypto token by market capitalization. This comes amid a drop in prices ETH Pricewith history suggestion that in the brief term the value of the cryptotoken may decline even further.
Whales are accumulating more ETH
Data from the market analysis platform To the Block shows that Ethereum Whales bought 297,670 ETH ($1 billion) on July 24. The previous day, these whales also bought almost 400,000 ETH. Further data shows an augment in inflows into these whale addresses in the last seven days.
The decrease in outflows from these addresses further highlights the confident attitude of these investors towards Ethereum, despite its insufficient performanceOutflows from these accounts have fallen by more than 14% over the past seven days and by more than 16% over the past 30 days.
This vast net flow for vast holdersIntoTheBlock also highlights a wave of accumulation among Ethereum whales, as net flows have increased by over 313%. This indicates that these investors are making vast accumulations rather than deciding to sell their ETH holdings.
On-chain analytics platform Santiment noted that this significant augment in ETH whale activity is due to Spot ETFs Ethereumwhich began trading on July 23. The platform made this observation by revealing that since July 17, the amount of ETH transfers has exceeded the value of $100,000, which is more than 64% higher than the number of BTC transfers and more than 126% higher than the number of USDT transfers on Ethereum Network.
Spot Ethereum ETFs were undoubtedly bullish on Ethereum even before their launch, as cryptocurrency analysts like RLinda Planned that ETH could rise to $4,000 with these funds. It is no wonder then that Ethereum whales continue to accumulate the crypto-token in anticipation of higher ETH prices.
The introduction of Spot Ethereum ETF may be a hurdle at first
Spot Ethereum ETFs were designed be the catalyst that triggers mass rally in ETH price, and that will likely happen at some point. However, history suggests that these funds may initially act as a headwind for Ethereum, similar to the fate that befell Bitcoin immediately after Spot Bitcoin ETF Launched earlier this year.
Bitcoin has experienced significant price declines, mainly due to outflows from Bitcoin Trust (GBTC) by GrayscaleA similar situation is already happening with ETH from Grayscale’s Ethereum Trust (ETHE). Interestingly, Grayscale’s ETHE experienced net outflow of $484.1 million on the first day of trading, significantly larger than GBTC’s net outflow on the first day, and GBTC is larger.
With this in mind, Ethereum could face significant selling pressure from Grayscale’s ETHE. Data Data from Farside Investors shows that the Spot Ethereum ETF saw a net outflow of $326.9 million on July 24 (Day 2), which likely represents just the beginning of massive outflows that could eventually come from the fund.
Featured image created with Dall.E, chart from Tradingview.com
