The Ethereum market grapples with mixed signals as the long-dormant Ethereum Foundation wallet awakens and spots Ether ETFs experiencing significant outflows.
On July 26th, data from Lookonchain revealed a surprise movement of 92,500 ETH (around $295 million) from an Ethereum Foundation wallet inactive for over six and a half years. This large transfer sparked community discussions, with some praising it as a sign of strategic management by the foundation.
This activity coincides with a period of selling pressure for Ethereum (ETH), the world’s second-largest cryptocurrency. The recent approval of spot Ether ETFs, initially seen as a bullish development, appears to be a “sell-the-news” event, leading to a price drop of 9% on Thursday. Although Ethereum has partially recovered to $3,250, bulls need to see it break above $3,500 for a sustained rally.
Meanwhile, concerns are mounting about outflows from spot Ether ETFs. Grayscale’s ETHE, the leading product, witnessed over $346 million in outflows on Thursday alone. This has eroded its total assets under management (AUM) by over $1.5 billion within just three days of launch.
However, there are some bright spots. Black Ether ETF (ETHA) saw daily inflows of $72.9 million, while Fidelity’s FETH and Bitwise Ether ETF (ETHW) also registered positive inflows of $34.3 million and $17 million respectively. Notably, ETHW achieved a milestone by having its banner displayed on the New York Stock Exchange (NYSE).
The market’s reaction to the Ethereum Foundation’s wallet movement remains unclear. While it might indicate strategic portfolio management, it could also be interpreted as a potential sell-off. The coming days will be crucial in determining whether the overall outflows from spot Ether ETFs continue and how the Ethereum price reacts to this complex scenario.