Asset manager Fidelity transferred millions of dollars’ worth of Ethereum to Coinbase in less than two days, sparking speculation of a sell-off.
Ethereum, like most other crypto assets, has seen massive price retracements recently. The leading altcoin has corrected 13% in the past three days, relinquishing all its gains earlier in the month.
Amid the price struggles, large Ether holders are shifting substantial amounts of the asset to exchanges, adding to the bearish momentum. Data from on-chain analytical firm Lookonchain shows that Ethereum spot exchange-traded fund (ETF) issuer Fidelity recently moved a hefty amount to Coinbase.
Cumberland Aids Fidelity’s 65M ETH Shift
Lookonchain, which cited Arkham, shows that Fidelity has been moving Ethereum through Cumberland, the liquidity provider for its Ether spot ETF product. The asset manager shifted roughly 65 million ETH to Coinbase in 34 hours.
Cumberland resumed the transfer with 20,000 ETH ($66.62 million) on January 8. Almost 24 hours later, the wallet tagged Cumberland DRW with the address “0x8BB85” moved another 11,250 ETH ($36.94 million).
The market maker rounded off the Ether shift with 22,500 ETH ($73 million) moved over two transactions by 19:35 (UTC) to Coinbase. Meanwhile, the address still holds 1,474 ETH ($4.8 million) at press time.
Cumberland Ether Sale
Other Large Holders Dump Ethereum
Interestingly, the Ethereum Foundation also participated in the ongoing crypto sell-offs. Arkham’s data shows the organization sold the top again.
The Foundation dumped 100 ETH on Wednesday through the CoW Protocol when Ethereum traded at $3,363 per coin. In return, the address received $336,300 DAI, which was transferred to another wallet tied to the Foundation.
Ethereum Foundation
These dumps have triggered fears of a further downward spiral in the market. Observers are particularly concerned the sales would jeopardize expectations of a near-term rebound amidst macroeconomic headwinds.
Fidelity Remains Bullish
Despite the sales, the asset manager remains bullish on the altcoin king, as shown in its 2025 outlook. Titled “2025 Look Ahead,” the report highlighted Fidelity’s stance on the growth of the two crypto leaders, Bitcoin and Ethereum.
The piece stresses the bullish long-term outlook of the Deneb-Cancun upgrade, the impact of L2s on the Ethereum network, and future upgrades to watch out for.
Furthermore, the article compares Ethereum to Solana, maintaining that the altcoin leader still has advantages in total-value locked (TVL) and developer preference despite Solana’s recent prowess in on-chain activities and revenue.
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