Kraken Faces Significant ETH Inflow as Ethereum Foundation Moves $650M Amid ETF Outflow Pressure
In a substantial market development on October 22, 2025, the ethereum Foundation executed a major transfer of 160,000 ETH valued at approximately $650 million to a wallet address with established connections to Kraken Exchange. This strategic movement occurs against a backdrop of concerning ETF performance metrics, with U.S. spot ETH ETFs recording $145 million in net outflows on October 20 alone, extending a two-week pattern of declining institutional demand. Historical transaction data from Arkham Intelligence confirms this destination wallet's previous activity involving both Kraken Exchange and SharpLink Gaming, suggesting potential preparation for market operations or liquidity management. The timing of this substantial transfer raises significant questions about the Foundation's strategic response to current market conditions, particularly given the sustained pressure on Ether's price performance. Market analysts are closely monitoring whether this movement signals a broader shift in institutional positioning or represents routine treasury management by the Foundation. The convergence of substantial foundation activity with persistent ETF outflows creates a complex narrative for Ethereum's near-term price trajectory and institutional adoption patterns.
Ethereum Foundation Moves $650M ETH to a Wallet Used for Selling Amid Low ETF Demand
The Ethereum Foundation has transferred 160,000 ETH, worth approximately $650 million, to a wallet historically linked to exchange deposits and sales. On-chain data from Arkham Intelligence reveals prior transactions from this address to Kraken Exchange and SharpLink Gaming.
Ether's price faces downward pressure as U.S. spot ETH ETFs record $145 million in net outflows on October 20, compounding two-week withdrawals nearing $500 million. The asset tests critical support at $3,900—a level that held during recent market turbulence—after peaking at $4,959 in mid-August.
Market sentiment remains fragile as institutional demand wanes and foundation-linked selloffs loom. Long-term investors appear to be accumulating at current levels, betting against the bearish technical outlook.
Kraken CEO Challenges ABA's Stance on Stablecoin Yields Amid Banking Sector Tensions
Kraken CEO David Ripley has publicly criticized the American Bankers Association (ABA) for its opposition to interest-bearing stablecoin products. The dispute underscores the intensifying competition between traditional banks and crypto platforms for deposit market share.
The ABA's senior vice president Brooke Ybarra warned that stablecoin yields—some offering up to 5%—could divert trillions from bank deposits, citing Treasury estimates of potential $6.6 trillion in deposit flight. This comes as the GENIUS Act provides regulatory clarity for stablecoin issuers to operate.
Ripley's rebuttal highlights a fundamental clash between legacy finance and decentralized alternatives. "Stablecoins represent financial innovation, not systemic risk," his statement implied, framing the debate as a battle for the future of yield-bearing assets.
