TLDR
- A Bitcoin whale staked $1B in Ethereum, continuing the trend of capital rotation from BTC to ETH.
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Ethereum outperformed Bitcoin, with ETH up 25% in the last month while BTC slid 4%.
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The whale’s purchases bring their total ETH holdings to 886,000, worth over $4B.
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Spot Ethereum ETFs saw $3.87B in August, signaling strong institutional demand for ETH.
A Bitcoin whale, known for its aggressive capital rotations, has added another $1 billion worth of Ethereum to its holdings, continuing a trend that started earlier in the year. The whale, with a total of $5 billion in assets, has now staked all of its newly purchased Ethereum to earn rewards. This move follows a pattern in which the whale has increasingly rotated its portfolio from Bitcoin (BTC) into Ethereum (ETH).
On-chain data from Arkham Intelligence revealed that the whale purchased $1.08 billion in ETH on September 1 alone. This recent acquisition pushes the whale’s total ETH holdings to 886,000 ETH, valued at over $4 billion at the time of writing. Despite broader market correction risks, where Ethereum has been predicted to pull back below $4,000, the whale’s actions indicate strong confidence in Ethereum’s long-term potential.
Ethereum’s Outperformance Over Bitcoin and Institutional Demand
Ethereum has recently outperformed Bitcoin, a key factor in the whale’s decision to pivot more of its holdings into ETH. Over the last month, ETH has surged by approximately 25%, while Bitcoin has seen a 4% decline. This shift in momentum has been reflected across both retail and institutional markets, with Ethereum continuing to gain favor.
A notable example of this is the U.S. spot Ethereum ETFs, which saw net cash inflows of $3.87 billion in August. Although Ethereum ETFs faced slight outflows to start September, the demand for Ethereum remains strong among institutional investors. Ethereum’s rising demand is also seen in its decreasing supply on centralized exchanges, as investors continue to accumulate ETH, pushing the net supply on platforms like Binance down.
Crypto analytics platform CryptoQuant reported that Ethereum’s reserves on Binance have been consistently dropping, signaling that more users are holding ETH in private wallets, rather than trading it on exchanges.
Bitcoin Whale’s Strategy: A Long-Term Bet on Ethereum
This massive shift from Bitcoin to Ethereum is part of a broader strategy by the Bitcoin OG whale, who has been buying Ethereum for months. The whale started with a large stash of Bitcoin, worth approximately $642 million back when it was acquired. Over time, this position has grown to a portfolio valued at more than $11 billion, with a substantial portion now in Ethereum.
The whale’s most recent transactions included the purchase of nearly half a million ETH after depositing over 22,700 BTC. This move highlights the whale’s belief in Ethereum’s potential to outperform Bitcoin in the current market environment.
As the whale continues to accumulate Ethereum, it is staking its ETH holdings to generate additional rewards. This strategy of staking and accumulating further ETH emphasizes the whale’s long-term commitment to ETH, despite potential risks from market volatility and predictions of a pullback in ETH prices.
