- Whale initiated $295m ETH long positions with up to 10x leverage.
- ETH ETFs witnessed a year’s worth of inflows in just six weeks.
- Institutional ETH reserves jumped from $6bn to $17bn within a month.
A notable Bitcoin (BTC) whale has shifted millions into Ethereum (ETH), representing one of the most significant visible portfolio changes this quarter.
Blockchain data indicates the whale moved $76 million worth of BTC to Hyperliquid, converted it, and then opened leveraged long positions in ETH across multiple wallets.
This shift comes as Ethereum outpaces Bitcoin in both returns and institutional inflows, leading some to refer to this period as the beginning of an “Ethereum season.”
The action aligns with increasing ETH exchange-traded fund (ETF) inflows and amplified treasury investments in altcoins.
Whale reallocates holdings toward Ethereum
According to blockchain analytics firm Lookonchain, the whale acquired 14,837 BTC seven years ago from HTX and Binance at an average price of $7,242 per coin.
This acquisition, worth $107.5 million at the time, has escalated to over $1.6 billion.
Recent transactions disclose the whale deposited 670.1 BTC, valued at $76 million, into the decentralized trading platform Hyperliquid.
Post-sale, they initiated long positions totaling 68,130 ETH (approximately $295 million) across four wallets.
A majority of trades were executed with leverage up to 10x, amplifying the potential risks and rewards.
Recent HypurrScan data shows that all of the whale’s wallets are now experiencing unrealized losses reaching $1.8 million.
Nevertheless, this significant diversification highlights a definitive trend towards ETH amid its outperformance compared to BTC.
Market data from Coinglass indicates that ETH has achieved a 71.91% return in the third quarter, in contrast to just 6.28% for BTC.
Ethereum’s growth has led analysts to describe this period as “Ethereum season,” where capital is increasingly directed towards ETH rather than Bitcoin.
This momentum has been reflected in market activities, with Ethereum consistently surpassing Bitcoin in daily returns since the quarter’s inception.
Institutional interest bolsters Ethereum demand
Institutional demand for Ethereum has surged. Corporate acquisitions of Bitcoin for treasury reserves have decreased, with merely 2.8 companies per day adding BTC to their portfolios. Conversely, Ethereum is witnessing sustained inflows.
The Strategic ETH Reserve website reported that ETH holdings by institutional players increased from $6 billion to $17 billion in the preceding month, marking an 183% rise.
This accumulation signifies confidence in Ethereum’s market trajectory and its role in the broader crypto landscape.
The whale’s leveraged entry into ETH resonates with this larger trend, indicating that both individual and institutional strategies are aligning towards Ethereum as it leads the altcoin phase of the market cycle.
Ethereum season indicates the next altcoin cycle stage
Ethereum’s upward momentum is largely regarded as part of the wider “altseason” cycle. In this context, capital typically flows into Bitcoin first, followed by Ethereum, and then diffuses to other altcoins before reaching a peak.
With ETH already outperforming BTC in both Q2 and Q3, and with institutional investment on the rise, analysts suggest the market may now be entering the second stage of the altcoin cycle.
The whale’s decision to convert part of its BTC into ETH exemplifies this trend, with its $76 million wager underscoring how long-term holders are adapting to changing market dynamics.
