Ethereum Holders Accumulate 113K ETH, Outpacing Spot ETF Inflows
Ethers has failed to gain any upward traction despite the hype around it. Instead, the altcoin ended up shedding nearly 2% over the past 24 hours as it hovered near $3,460 despite a strong debut for spot Ethereum ETFs. This tepid price movement contrasts with the strong trading activity recorded by these new investment vehicles on the very first day.
However, the resurgence in whale accumulation tells a different story.
Ethereums Aggressive Accumulation
According to the latest data shared by IntoTheBlock, theres a significant trend in Ethereum accumulation despite a recent dip in Ether prices. On July 23rd, large holders amassed a whopping 112.9k ETH, which is worth nearly $390 million.
Such aggressive accumulation by prominent investors suggests a strong belief in Ethers long-term value and potential. This accumulation even surpassed the $106 million net inflows observed in spot Ethereum ETFs over the same period.
Meanwhile, BlackRocks ETHA fund topped the charts with $266.5 million in inflows followed by the Bitwise ETHW spot ETF, which had a solid start with $204 million. The Fidelity FETH fund managed to attract $71 million. Smaller inflows between $7.5 million and $13 million were recorded by 21 Shares, Invesco, VanEck, and Franklin on the first day.
Grayscales newly converted Ethereum Trust (ETHE) experienced an outflow of $484 million.
Ethereum ETFs Unlikely to See Dramatic Initial Capital Inflows
In a statement to CryptoPotato, Richard Teng, CEO of Binance, said that while a steady capital deployment into these ETFs is anticipated, it is unlikely to be dramatic initially and will fluctuate based on various macroeconomic factors.
However, I believe that the potential for ETF liquidity to grow exponentially is significant. With SEC approval and listing, these ETFs can now be invested in by institutions, which typically have a long-term investment horizon. This institutional involvement could provide a stable and substantial influx of capital over time.
Teng noted the overwhelmingly positive reception of spot Bitcoin ETFs on their first trading day and expressed uncertainty about whether Ethereum ETFs will experience the same level of enthusiasm. Even so, the Binance executive added that their launch is expected to be significantly bullish for the entire digital asset industry.
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Text source: CryptoPotato
