Ethereum remains under pressure as cofounder Vitalik Buterin sells a tranche of his holdings and sustained spot ETF outflows act as headwinds for the second-largest cryptocurrency. Buterin sold about $5.9 million worth of ETH over the past several days after withdrawing 3,500 tokens from the Aave lending protocol, according to on-chain data; since the start of the month, he has reportedly sold 8,000 ETH.
Spot Ethereum ETFs recorded $123.4 million in outflows last week, marking the fifth consecutive weekly retreat, with nearly $1.4 billion exiting the funds in the period. Kelly Ye, deputy CIO of Avenir Group, says the sales historically funded ecosystem development or philanthropy rather than signaling reduced conviction, and that they could create short-term sentiment pressure but are not a structural negative given his continued role in building Ethereum. ETF outflows reflect positioning and liquidity conditions more than protocol fundamentals, with ETH still being treated tactically by many allocators rather than as a core allocation.
On the institutional front, BlackRock moved toward listing its staked ETH ETF, with an amendment filing showing seed share purchases intended to finance ETH purchases. BitMine Immersion Technologies, the leading Ethereum treasury firm, acquired roughly $100 million worth of ETH last week and increased staking to 3 million tokens, bringing annualized staking revenue to $176 million. Harvard University’s endowment gained exposure to Ethereum for the first time by purchasing 3.9 million shares of BlackRock’s iShares Ethereum Trust ETF for about $86.8 million, per an SEC filing, while Harvard Management Company sold roughly 1.5 million shares of the iShares Bitcoin Trust, decreasing its Bitcoin exposure by 21%.
The changes in institutional exposure to Ethereum come as investor sentiment is at “rock bottom,” reminiscent of the 2018 crypto winter and the 2022 lows during the FTX collapse, according to BitMine Chairman Tom Lee. “Crypto has remained weak since the price shock and massive deleveraging,” he said, adding that the long-term outlook for Ethereum remains outstanding and the company will continue to acquire ETH regardless of near-term price trends.
Analysts say the key Bitcoin level to watch is a “decision band” around $67,000, with some caution that a deeper drawdown could push BTC below $30,000. Some market participants note that Bitcoin’s price action remains a barometer for crypto risk appetite, while others emphasize that strategic buyers continue to deploy capital across crypto markets despite the sector’s softness. In related developments, Strategy is unfazed by Bitcoin’s woes and announced its 100th Bitcoin purchase, underscoring continued interest from diversified investors. Aave also faced pressure as BGD Labs announced it will cease contributions, a development viewed by some as a significant talent loss for the lending protocol.
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