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Ethereum’s ($ETH) recent price struggles haven’t stopped institutions from accumulating coins, with major entities moving significant holdings from exchanges. The second-largest cryptocurrency by market capitalization has gone up by 0.3% since rebounding from recent lows and reclaiming the $2,650 level.
On-chain data from Lookonchain revealed that in the past two days, Cumberland, a crypto asset management firm, withdrew 62,381 $ETH (worth approximately $174 million) from exchanges and transferred it to Coinbase Prime.
It seems that institutions are accumulating $ETH.
— Lookonchain (@lookonchain) February 6, 2025
In the past 2 days, #Cumberland withdrew 62,381 $ETH($174M) from exchanges and transferred it to #CoinbasePrime.https://t.co/AT53HHa36m pic.twitter.com/6NJxnKxjZH
The news comes just two days after BlackRock, the world’s largest asset manager, purchased 100,535 $ETH valued at $276 million, taking their total holdings to 1,352,934 $ETH, worth approximately $3.71 billion, according to Lookonchain’s February 5 X update.
Arkham Intelligence data shows that after its latest $ETH transaction, Cumberland is managing over $31 million in crypto assets, which include AAVE, USDC, AVAX, USDT, and.
Ethereum outflows from exchanges fuel price recovery
Ethereum’s recent price action follows a period of intense market volatility that saw its price drop to as low as $2,120. Buyers stepped in aggressively at that level, leading to a strong recovery. The rally gathered momentum after $ETH broke through key resistance levels at $2,550 and $2,650, and as of the time of this publication, the coin is changing hands above $2,800.
Records from CryptoQuant show that Ethe’s netflow, which tracks the total inflows and outflows from trading platforms, saw 367.6 $ETH (approximately $992,000) move from exchanges on Wednesday.
There have been three consecutive days of cumulative negative netflow recordings, signaling a growing confidence among investors of an incoming price rally.
Kraken exchange was the biggest contributor to the outflows, garnering about 299 $ETH, representing over 80% of the total.
CryptoQuant contributor Amr Taha noted on Wednesday that Ethereum’s exchange netflow on derivative exchanges has fallen below -300,000 $ETH for the first time since August 2023. This suggests traders are moving large amounts of $ETH off exchanges, reducing sell pressure.
Bitcoin exchange outflows continue
Bitcoin also experienced the same market sentiment, with centralized exchanges registering a net outflow of over 17,000 $BTC, valued at approximately $1.6 billion based on Bitcoin’s market price of $98,600.
According to data from Glassnode, this marked the largest single-day outflow of $BTC since April 2024.
Similar to Ethereum, exchange data from CryptoQuant further shows that all major crypto trading platforms recorded a total negative net flow of 47,000 $BTC yesterday. Of that, 15,800 $BTC was attributed to Coinbase alone.
Coinbase split 4 addresses totaling 20,949 $BTC, into 60 Addresses: 20 x 245 $BTC and 40 x 401 $BTC
— Sani | TimechainIndex.com (@SaniExp) February 5, 2025
looks like something is cooking, possible major purchases this week by ETFs or MSTR https://t.co/br8iMlnyaD
Large investors typically withdraw Bitcoin from exchanges when they plan to hold it for the long term, which the market considers a bullish signal.
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