Whale Shifts $4B from BTC to ETH Amid ETF Inflows
An Ethereum whale dormant for seven years has reemerged since August, selling Bitcoin to accumulate roughly 886,371 ETH (about $4 billion). On September 1, Lookonchain data show it swapped 2,000 BTC for 48,942 ETH in four hours, following a prior sale of 4,000 BTC for 96,859 ETH—bringing its one-day ETH haul to nearly 145,800 ETH. Arkham Intelligence notes the whale’s initial BTC holdings exceeded $5 billion and that it spent $2.5 billion on ETH in one week. ETF flow data from SoSoValue reveal $751 million net outflow from Bitcoin spot ETFs in August versus $3.87 billion net inflow into Ethereum spot ETFs. Analysts point to growing regulatory clarity under the GENIUS Act and a diversification trend into smart-contract chains like Solana (SOL) as drivers of rotation. Traders should monitor ETH price action under mounting whale and institutional demand, which could fuel further ETH upside and exert selling pressure on BTC.
Bullish
The large-scale conversion of BTC into ETH by a long-dormant whale, combined with a $3.87 billion inflow into Ethereum spot ETFs against Bitcoin ETF outflows, signals strong institutional and whale demand for ETH. In the short term, this buying pressure could drive further ETH price gains. Over the long term, growing regulatory clarity and portfolio diversification trends into smart-contract platforms may sustain upward momentum for ETH while applying downward pressure on BTC.