The Foundation is selling tokens again, and the whole crypto community is watching and criticizing it. But the amount it’s selling is nowhere near even a fraction of ETF outflows.
A wallet linked to the Ethereum Foundation, identified by Lookonchain, sold another 2,000 ETH on November 13, swapping them for about $3.87 million in stablecoins. So far in November, it has sold a total of 4,000 ETH, worth about $8.03 million. Since October 26, the cumulative total is 6,785 ETH, worth about $14.45 million.
At the same time, U.S. spot ETH ETFs had seen net outflows of $695.9 million through November 11. Money flowed out on seven of the eight trading days, and assets under management shrank from $13.22 billion to $11.65 billion. The $8.03 million the Foundation sold in November amounts to just one eighty-seventh of ETF outflows. Including November 12, ETF outflows came to nearly $766 million, making them 95 times larger.
What really stings is the scale: ETH’s total trading volume on Friday was about $14.8 billion, making the Foundation’s $3.87 million sale just 0.03% of the total. After the previous three token sales, ETH fell by 9%, 7.7%, and 10.4%, respectively. It looks like a signal, but each time the whole market was falling, ETFs were bleeding at the same time, and ETH futures alone saw $288 million in liquidations over 24 hours.
My take is that blaming the Foundation’s token sales is aiming at the wrong target. Selling tokens is a necessity to pay salaries and provide grants; converting them into stablecoins locks in their value in U.S. dollars and has nothing to do with whether the Foundation is bearish. What will really determine whether ETH can reclaim $2,000 is whether ETF money keeps flowing out: Friday’s low of $1,890 is the first hurdle, and if it falls below $1,875, then $1,800 comes into view. Conversely, this breakdown will only count as a false move if ETFs return to net inflows and ETH climbs back above $2,020. Let’s set the snacks aside for now; over the next few days, keeping an eye on ETF flows will be far more useful than watching the Foundation’s wallet. $ETH
A wallet linked to the Ethereum Foundation, identified by Lookonchain, sold another 2,000 ETH on November 13, swapping them for about $3.87 million in stablecoins. So far in November, it has sold a total of 4,000 ETH, worth about $8.03 million. Since October 26, the cumulative total is 6,785 ETH, worth about $14.45 million.
At the same time, U.S. spot ETH ETFs had seen net outflows of $695.9 million through November 11. Money flowed out on seven of the eight trading days, and assets under management shrank from $13.22 billion to $11.65 billion. The $8.03 million the Foundation sold in November amounts to just one eighty-seventh of ETF outflows. Including November 12, ETF outflows came to nearly $766 million, making them 95 times larger.
What really stings is the scale: ETH’s total trading volume on Friday was about $14.8 billion, making the Foundation’s $3.87 million sale just 0.03% of the total. After the previous three token sales, ETH fell by 9%, 7.7%, and 10.4%, respectively. It looks like a signal, but each time the whole market was falling, ETFs were bleeding at the same time, and ETH futures alone saw $288 million in liquidations over 24 hours.
My take is that blaming the Foundation’s token sales is aiming at the wrong target. Selling tokens is a necessity to pay salaries and provide grants; converting them into stablecoins locks in their value in U.S. dollars and has nothing to do with whether the Foundation is bearish. What will really determine whether ETH can reclaim $2,000 is whether ETF money keeps flowing out: Friday’s low of $1,890 is the first hurdle, and if it falls below $1,875, then $1,800 comes into view. Conversely, this breakdown will only count as a false move if ETFs return to net inflows and ETH climbs back above $2,020. Let’s set the snacks aside for now; over the next few days, keeping an eye on ETF flows will be far more useful than watching the Foundation’s wallet. $ETH
