Are Ethereum ETFs Overbought? Here Are The Top Five To Watch
Last week’s sell off in Bitcoin and Ethereum will not change the basic narrative out there for cryptocurrency investors – Ethereum (ETH) is the No. 2 buy and hold after Bitcoin. Nothing comes close. It is surely Wall Street’s favorite blockchain. Its near-record highs in August were propelled thanks to Bitcoin’s all-time highs in early August.
“Nothing marks a Bitcoin dominance top like a whale rotating into Ethereum,” said Joel Valenzuela, core founder of Dash DAO (DASH).
A Bitcoin whale, holding around $11 billion in BTC reportedly shifted $2.59 billion into Ethereum—allocating $2.2 billion for spot ETH and $577 million into perpetual long positions, realizing about $33 million in profits. Additionally, Arkham data revealed on August 29 that nine massive whale addresses acquired a combined $456 million in ETH, signaling a “natural rotation” of capital from Bitcoin to Ethereum.
(Sadly, one of them was hacked and seems to have lost everything, according to the @ZachXBT account on on X, an advisor for Paradigm, a cryptocurrencies investment firm in San Francisco.)
It’s not just old Bitcoin holders pumping Ethereum’s value. It’s Wall Street that’s driving a lot of the investment thesis behind the world’s leading blockchain.
“The rotation into Ethereum tells us something important: institutions are no longer just buying crypto, but they are also allocating to infrastructure, as in blockchains,” said Andrei Grachev, Managing Partner of DWF Labs, a Web3 investment firm and market maker based in Singapore.
“Ethereum is not just another asset on the screen. It is where staking generates returns, stablecoins get issued, and entire financial applications are settled,” Grachev said. “This is about more than price momentum. …
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