Ethereum holders have been accumulating a significant amount of ETH, despite the lackluster performance of the altcoin in recent days. While the price of Ether has dropped by nearly 2% and is hovering around $3,460, large investors have been aggressively accumulating the cryptocurrency. According to data from IntoTheBlock, on July 23rd, these holders accumulated a total of 112.9k ETH, which is equivalent to almost $390 million. This accumulation surpasses the net inflows of $106 million seen in spot Ethereum ETFs during the same period.
The top spot was taken by BlackRock’s ETHA fund, which attracted $266.5 million in inflows, followed by the Bitwise ETHW spot ETF with $204 million. The Fidelity FETH fund also saw a decent inflow of $71 million. Despite these numbers, smaller inflows ranging from $7.5 million to $13 million were recorded by 21 Shares, Invesco, VanEck, and Franklin on the first day. On the flip side, Grayscale’s newly converted Ethereum Trust (ETHE) experienced an outflow of $484 million.
Richard Teng, CEO of Binance, commented on the situation, stating that while there is expected to be a steady flow of capital into these ETFs, the initial inflows may not be as dramatic. Teng believes that the potential for ETF liquidity to grow exponentially is significant, especially with institutional involvement. Institutions, which typically have a long-term investment horizon, could provide a stable and substantial influx of capital over time.
Teng pointed out that the reception of spot Bitcoin ETFs on their first trading day was overwhelmingly positive, but he remains uncertain whether Ethereum ETFs will experience the same level of enthusiasm. Nevertheless, the launch of these ETFs is expected to have a significantly bullish impact on the entire digital asset industry.
In conclusion, despite the lackluster performance of Ether in the market, the aggressive accumulation of ETH by prominent investors indicates a strong belief in the long-term value and potential of the cryptocurrency. The launch of spot Ethereum ETFs has also garnered significant attention, with large inflows being recorded. The future of Ethereum ETFs remains uncertain, but the overall sentiment towards these investment vehicles is positive, signaling potential growth in the digital asset industry.