ETH Down 45% YTD: Why SharpLink and Crypto Whales Are Still Buying
Despite Ethereum falling up to 45% year-to-date, SharpLink has resumed large-scale ETH purchases and whale wallets are actively accumulating, signaling long-term institutional conviction even amid persistent market weakness.
Ethereum has had a rough year. The leading altcoin is currently trading down between 20% and 45% year-to-date, placing it firmly in negative territory alongside much of the broader crypto market. Yet despite this prolonged slump, institutional players and large wallet holders are continuing to accumulate ETH — a trend that's raising eyebrows across the industry.
Corporate treasury firm SharpLink made headlines after resuming Ethereum purchases for the first time in eight months. The company acquired 5,000 ETH through FalconX at an average price of $1,576 per token, totaling approximately $7.88 million. Shortly after, SharpLink followed up with an additional purchase of 26,324 LSETH (liquid staked Ethereum), valued at around $45.54 million. These transactions brought the company's total Ethereum holdings to 876,285 ETH, which includes 22,102 staked tokens.
According to data from Arkham, SharpLink is currently sitting on nearly $1.71 billion in unrealized losses. Nevertheless, the company's continued buying activity points to a strong belief in Ethereum's long-term utility and the income potential from staking. If more institutions follow this pattern of absorbing market weakness, it could help reduce selling pressure over time — though any genuine recovery will still require a pickup in network demand and improved overall market sentiment.
The accumulation isn't limited to corporate treasuries. Whale wallets have been mirroring the same pattern. Over the past nine days, a newly created wallet accumulated 18,361 ETH worth approximately $28.9 million, along with 152,986 HYPE (Hyperliquid) tokens valued at $9.73 million — all routed through FalconX. This kind of sustained buildup suggests the wallet's owner is positioning for future price movements rather than reacting to short-term volatility.
Adding to the picture, BlackRock transferred 2,700 Bitcoin and 41,996 ETH to Coinbase, a combined move worth around $226 million. While such transfers are typically linked to ETF settlement activity, custodial adjustments, or liquidity management — and don't necessarily signal a sell-off — they underscore how actively major players are managing their Ethereum exposure.
Despite this accumulation activity, broader institutional demand via spot ETFs has not kept pace. Data from SosoValue shows that Ethereum spot ETFs recorded a net outflow of $12.85 million on June 26th. Earlier inflows of $22.50 million and $9.59 million had briefly suggested sentiment was stabilizing, but sellers quickly reasserted control. This divergence highlights a split between direct treasury buyers, who appear committed for the long term, and ETF investors, who are reacting more sensitively to day-to-day market conditions.
That said, the cumulative net inflows into Ethereum ETFs remain notably strong at $10.90 billion. ETF issuers still hold over $8.38 billion in ETH, representing roughly 4.42% of the asset's total market capitalization, with daily trading volume running at $491.73 million. This suggests institutions are reallocating positions rather than exiting Ethereum altogether.
The overall picture for Ethereum is one of cautious but persistent institutional conviction. Treasury buyers and whales are accumulating at current prices, seemingly unfazed by short-term losses. However, for ETH to mount a meaningful recovery, the market will need to see stronger ETF inflows and a broad improvement in sentiment — conditions that have yet to materialize.