• Significant Ethereum transfers linked to dormant addresses moved $2 billion in ETH, affecting market dynamics.
• Ethereum ETFs saw nearly $100 million in inflows, with BlackRock’s fund leading.
• Grayscale’s ETF experienced slowed outflows, hinting at potential market stabilization.

Large Ethereum (ETH) holders moved 820,000 ETH, over $2 billion, within 24 hours. Lookonchain on X (formerly Twitter) reported that market maker Jump Crypto transferred over $29 million for sale and redeemed $48 million from Lido.

Dormant Addresses Shift Billions

ETH addresses dormant for over three years moved $2 billion in ETH, equating to 789,533 ETH, just two hours ago. Lookonchain linked these addresses to the defunct Chinese Ponzi scheme, PlusToken, which was dismantled in November 2020.

PlusToken had $4.2 billion in crypto seized. Lookonchain noted, “Through on-chain tracking, we found that these funds came from the wallet ‘Plus Token Ponzi 2’. Plus Token Ponzi 2 dispersed 789,533 ETH to thousands of wallets in 2020 and has not moved since April 2021.”

This activity impacted ETH’s price, resulting in a 2.2% pullback within the past hour, marking the most significant correction among the 20 largest cryptocurrencies by market cap.

Ethereum ETFs Register Positive Flows

In contrast, spot Ethereum exchange-traded funds (ETFs) in the US saw nearly $100 million in inflows on Aug. 6, the second-largest net inflow since their launch on July 23. Crypto Briefing reported that Grayscale’s ETF, ETHE, saw nearly $40 million in outflows yesterday, the smallest amount since its conversion from a trust. Additionally, Ethereum ETFs registered $265 million in daily trading volume on Tuesday, according to DefiLlama.

Slowdown in ETHE Outflows

The daily outflow pace from ETHE hit a peak of $484 million on its debut date. ETHE outflows topped $1.5 billion after the first week of trading. However, the outflow pace has slowed since the start of this week. 

On Monday, ETHE reported over $46 million in net outflows. With Tuesday’s new outflows, total ETHE outflows exceeded $86 million this week. Analyst Mads Eberhardts previously anticipated a slowdown in ETHE outflows this week and suggested a potential price increase after outflows stabilized.

US spot Ethereum ETFs are experiencing mixed trends due to slower inflows into most funds. BlackRock’s iShares Ethereum Trust (ETHA) has been the most successful, ending Tuesday with almost $110 million in net inflows, bringing the total to nearly $870 million since its launch. 

Overall, the nine funds took in a net $98 million in cash on Tuesday. Fidelity’s Ethereum (FETH) fund followed BlackRock with $22.5 million in inflows. Other gains were seen in Grayscale’s Ethereum Mini Trust (ETH) and Franklin Templeton’s Ethereum ETF (EZET).