Crypto News

Ethereum Sees Significant Inflows Post Spot ETF Approval

Following the approval of the Ethereum Spot ETF, a substantial 160,930 ETH entered Coinbase over just two days.

This influx of ETH has raised questions about whether Grayscale’s Spot ETF, ETHE, will continue to exert selling pressure on the market. Recent data indicates that ETH net flows might be a leading indicator of this trend.

The ETH price has faced downward pressure due to large inflows into Coinbase. Since the trading of ETH spot ETFs began, hourly inflows have surged to their highest levels since May. This uptick suggests increased market activity and potential volatility.

In a notable on-chain movement, an Ethereum Foundation-related wallet, which had been dormant for 6.6 years, transferred 92,500 ETH (valued at $294.9 million) to a new wallet. These ETH tokens were originally received from the Ethereum Foundation on September 1, 2015, highlighting significant historical holdings being mobilized.

Again, Ethereum ETFs Saw A Negative Net Flow Of $152 Million

The latest ETH ETF update shows a negative net flow of $152 million, marking the second consecutive day of negative flows. Grayscale’s ETHE experienced another substantial outflow of $346 million, contributing to the overall negative sentiment in the market.

In summary, the approval of the Ethereum Spot ETF has led to significant inflows into Coinbase, impacting ETH prices and market dynamics. The mobilization of dormant Ethereum Foundation holdings and continued outflows from Grayscale’s ETHE are key factors to watch in the coming weeks. As the market adjusts to these developments, investors should stay informed about net flow data and on-chain activities to anticipate potential market movements.

Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.

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