After a period of sluggish demand, spot Ethereum ETF inflows have surged once again amid increased global liquidity following the Federal Reserve’s rate cuts. Despite a weak start to the week, inflows into spot Ether ETFs have rebounded strongly. The liquidity boost has reignited institutional interest in Ethereum investment products. As a result, Ethereum prices remain resilient, even in the face of significant ETH whale sell-offs over the past week.

Spot Ethereum ETF Inflows Exceed $85 Million

This week, total inflows into spot Ether ETFs surpassed $85 million, reversing several weeks of outflows. This coincides with Ethereum’s price strength, as it climbs towards $2,700 and eyes the next milestone of $3,000.

On Friday, September 27, spot Ethereum ETF inflows reached $58 million, with Fidelity’s FETH leading the charge at $42.5 million. BlackRock’s ETHA followed with over $11.5 million, while Grayscale’s ETHE experienced $10.7 million in outflows, according to data from Farside Investors.

Earlier in the week, Ether ETFs saw $80 million in outflows, primarily driven by massive withdrawals from Grayscale’s ETHE. However, BlackRock swiftly reversed this trend, spearheading renewed inflows into these investment products.

This recent influx of capital comes amid ongoing sell-offs by Ethereum whales over the past week.

ETH Whale Selloff Continues

While Ethereum ETFs attract inflows, the latest on-chain data reveals that institutions have been offloading their ETH holdings during the recent price rally. According to data from LookonChain, two major institutions have sold significant amounts of Ethereum (ETH).

A wallet associated with Cumberland deposited 11,800 ETH, valued at $31.88 million, into Coinbase just seven hours ago. Similarly, ParaFi Capital withdrew 5,134 ETH (worth $13.83 million) from Lido and transferred it to Coinbase Prime six hours ago.

In a separate development, an early Ethereum whale wallet cashed out 12,979 ETH for $34.3 million this week, following a nearly four-month hiatus. This whale initially withdrew 21,632 ETH from ShapeShift and Poloniex in 2016 when Ethereum was priced at just $7.074 per coin. Since May 2024, this whale has sold a total of 15,879 ETH, netting $43.5 million at an average price of $2,739 per ETH.

It appears that the inflows into spot Ethereum ETFs are largely offsetting the ETH whale sell-offs observed during the past week.