Bitcoin Whale dumps $3.8 billion to buy ETH! Analyst: The market has entered a mature and diversified era.

On-chain data shows that a super Whale known as “Bitcoin OG” has recently exchanged some BTC for Ethereum (ETH), currently holding ETH worth up to $3.8 billion. Analysts point out that this move not only reflects the trend of capital rotation but also signifies that the crypto market is moving towards maturity and diversification. With the U.S. regulatory policies turning friendly and increased inflows into ETH ETFs, the allocation strategies of institutions and long-term holders are quietly changing.

BTC Whale holdings of ETH reach new highs

(Source: Arkham)

According to data from the on-chain monitoring platform Lookonchain, this Bitcoin whale has been converting part of its BTC worth $11.4 billion into Ether since August. Just this past weekend, he sold 4,000 BTC (approximately $435 million) in exchange for 96,859 Ether.

On Monday, the whale deposited 1,000 BTC into a decentralized exchange, and the market generally speculates that it will continue to increase its holdings of Ether. The actions of this giant whale have brought its ETH holdings to a value of 3.8 billion USD, making it one of the largest single BTC → ETH fund rotation cases observed on-chain.

The trend of ETH investment diversification is accelerating

Apollo Crypto Chief Investment Officer Henrik Andersson stated that while it is impossible to determine the specific intentions of a single Whale, historically, the crypto market tends to exhibit a rotation pattern of “BTC → ETH → altcoins.”

He pointed out that the U.S. GENIUS Act and the implementation of pro-crypto regulatory policies have provided additional appeal for ETH. This act is the first federal law in the U.S. aimed at payment stablecoins. Since its signing in July, the price of ETH has soared, reaching an all-time high of $4,946 on August 24.

Currently, the ETH price is about $4,389, which has fallen 1.2% from its peak. However, the ETF capital flow indicates that funding in August has clearly favored ETH, showing that institutional investors are optimistic about its mid-term performance.

Analyst: ETH has become a core holding

Ryan McMillin, Chief Investment Officer of Merkle Tree Capital, believes that the shift of long-term Bitcoin holders to ETH is not short-term speculation but rather an acknowledgment of market maturation.

He explained: “For OG whales, BTC is digital gold, while ETH offers yield through staking and connects to a broader ecosystem of smart contracts and DeFi. Allocating ETH acknowledges that digital assets have entered an era of multi-protocols and multi-applications.”

McMillin added that most original whales still hold BTC, but ETH has shifted from a “speculative target” to a “core asset allocation.” This shift means that ETH’s weight in institutional portfolios may continue to rise in the future.

The season of altcoins may be about to begin

As ETH gains momentum, some analysts predict that the flow of funds may further spread to other high-potential public chain tokens. McMillin points out that if the inflow of funds into ETH continues, projects like Solana (SOL), which have consumer applications and DeFi appeal, may become the next beneficiaries.

This classic rotation pattern of “BTC → ETH → high Beta altcoins” has appeared multiple times during the mid-cycle of bull markets, usually accompanied by a recovery in market sentiment and an increase in capital liquidity.

Conclusion

Bitcoin whales are shifting billions of dollars towards ETH, which is not just a simple asset adjustment, but a reflection of market maturation and diversification. With the regulatory policies becoming more favorable, the inflow of ETH ETF funds, and the advantages of staking yields becoming prominent, ETH is gradually becoming one of the core allocations for institutions and long-term investors. Investors should closely monitor on-chain fund flows and ETF fund dynamics, as these signals often indicate the market trends for the next phase.