Ethereum traded near $2,250 on October 31 as investors closely tracked significant ETF outflows and mounting concerns over a large holding of ETH tied to the Binance hack. Recent market developments have shifted the focus to potential supply risks for the cryptocurrency.
ETF outflows pressure Ethereum price
Glassnode reported that US spot Ether ETFs recorded outflows for 23 consecutive trading sessions, marking the longest streak since these ETFs began trading. The withdrawal trend signals a shift in institutional sentiment, with the Ethereum price falling over 5% on Thursday before stabilizing on Friday.
Farside’s data revealed that outflows totaled $431.4 million over five days from October 26 to October 30. Outflows peaked on the final day at $155.7 million. On that day, BlackRock’s iShares Ethereum Trust saw $76.6 million withdrawn, while Grayscale’s Ethereum Mini Trust experienced $34.1 million in redemptions.
Glassnode noted that traditional investors had accumulated significant ETH positions in August and September, and stated that a recovery in ETF inflows could offer a renewed sign of institutional demand for Ethereum.
As the ETF outflows continue, traders remain attentive to whether institutional buyers will return to provide support for the token in the coming sessions.
Binance hack-linked ETH wallets add supply concerns
In addition to the ETF outflows, on-chain analysts have highlighted risks from a large volume of Ether controlled by wallets associated with the $6.3 billion Binance hack. TRM Labs previously estimated that attackers held over 420,000 ETH, while a later report on October 31 identified approximately 525,200 ETH across attacker-linked wallets as of 16:51 UTC.
These holdings raise questions about future potential sales, with any move to offload significant ETH volumes posing a risk to the market if liquidity is insufficient. The exact scope of attacker-linked assets may vary due to reporting time differences, but the exposure is widely watched.
Aave’s risk team reported that a wallet associated with the hack deposited about $60 million in USDT as collateral on October 29, borrowing 19,762 wrapped ETH before lending restrictions were imposed, but the borrowed funds were not seized.
This loan constitutes a fraction of the total stolen Ether. Reports suggest that attackers exchanged other assets for additional ETH, further enlarging their position.
While Tether and Circle moved to freeze large amounts of compromised stablecoins, no comparable measure exists for native Ether, which cannot be directly frozen by a central issuer.
Binance stated that it has replaced 90% of the assets stolen in the hack. The exchange assured customers that ETH balances are fully backed as it prepares to resume withdrawals on November 1. The company’s efforts include the use of corporate funds, futures insurance reserves, and the SAFU emergency fund.
Despite the replaced customer assets, the ETH held in attacker-controlled wallets remains outside Binance’s remediation. Analysts continue to warn that if these tokens move to exchanges, they could impact market supply and the token’s price.
With large ETH positions potentially entering the market and institutional outflows persisting, traders and investors are closely monitoring price reactions and shifts in market sentiment. For those seeking to track rapid changes in Ethereum flows and monitor significant on-chain wallet movements, CryptoAppsy provides real-time charts and customizable price alerts tailored to individual assets. These features can help Ethereum followers stay ahead of sudden market supply developments without missing time-sensitive events.
