Ethereum

Ethereum ETF Excitement Leads Crypto Whales to Scoop Up 426,000 ETH, Price Rally Next?

Published

5 months ago

July 29, 2024

Ethereum whales also known as major investors are gradually returning to the market following recent positive developments around ETH, which demonstrates renewed optimism among institutional and retail investors around the crypto asset. Current data shows that the whales have amassed 426,000 ETH in light of rising excitement over the introduction of spot Ethereum Exchange-Traded Funds (ETFs).

Ethereum Whales Acquires 426,000 ETH In One Week

Burak Kesmeci, a verified author and analyst at leading on-chain analytics provider, CryptoQuant, spotted the recent rise in ETH accumulation among major investors, which has triggered hope within the community about an impending potential price rally for the crypto asset.

After observing recent data, the expert reported that Ethereum whales acquired 426,000 ETH, valued at approximately $1.4 billion at its current price in one week, particularly between July 22 and July 28. The analyst also pointed out that the whale wallets holding at least 0.1% of the total amount of ETH have continuously displayed positive net flows, throughout the previous month.

According to Burak, this spike in accumulation was identified after a price recovery from recent lows below the $3,000 threshold. The expert also attributed the uptick to the frenzy around the launch of the spot Ethereum ETFs last week, garnering significant inflows since its inception.

Following the launch of the spot ETFs last week, Blackrock’s fund, ETHA, has seen the highest inflow, recording a net inflow of $442 million. Bitwise’s ETHW, takes the second spot with over $265 million in net inflows, while Fidelity’s FETH saw a net inflow of about $214 million. Despite witnessing significant outflows on day one trading, Grayscale’s ETHE has managed to amass a net inflow of over $164 million.

Burak highlighted that in just 4 trading days, spot Ethereum ETFs excluding ETHE have received investments totaling more than $1.17 billion. Due to the rate of these substantial inflows, Burak is confident that a rally could be on the horizon for ETH as seen with Bitcoin following the inception of spot BTC ETFs in January. “Of course, as adaptation increases and becomes easier, a rally similar to what we see in Bitcoin is expected to occur in ETH,” he stated.

ETH Price Begins The Week On A Positive Note

The price of Ethereum is currently demonstrating positive momentum, triggering sentiment about further gains. After falling to $3,200 on Sunday, the crypto asset has experienced a slight rebound, targeting the $3,400 price level.

This price rebound might be attributed to the current whale accumulation, as such heightened interest and adoption around a crypto asset is mostly considered a bullish factor that could impact prices.

At the time of writing, Ethereum has recovered by about 3.90% in the past day, trading at $3,385. Its market cap has attracted an uptick of over 3.71%, but its trading volume is still displaying negative sentiment, falling by more than 19% in the last 24 hours.