Ethereum records annual high in institutional activity following ETF launch

ethereum (eth) hit a yearly high in transactions above $100,000 following the launch of eth spot exchange-traded funds (ETFs), according to IntoTheBlock’s “On-chain Insights” newsletter. This comes despite ethereum showing a 4.6% drop over the past seven days.

However, eth ETFs have seen net outflows of about $190 million in the first three days since launch, according to Farside. This is primarily because Grayscale’s ETHE saw outflows of $1.1 billion, likely from investors who bought at a discount and sold at a profit after the transition to an ETF.

Cryptocurrency and broader stock markets have had a turbulent end to July, erasing monthly gains. eth has underperformed, attributed to changing macroeconomic sentiment and profit-taking following the ETF launch. Major stock indices have fallen nearly 10% from recent highs, which could weigh on crypto markets.

Political developments have also weighed on market sentiment, analysts at IntoTheBlock noted. Trump's chances of winning the presidency, which had risen to 70% following a debate and shooting, fell to 62% after Biden endorsed Kamala Harris, according to Polymarket.