Ethereum News Today: SharpLink Allocates $145M USDC to Buy ETH as Price Rises 4% on Institutional Adoption

SharpLink, a major Ethereum (ETH) holder, has transferred $145 million in USDC to Galaxy Digital’s over-the-counter (OTC) wallet, signaling its intent to accumulate additional ETH. The on-chain transaction, confirmed by analytics firm Lookonchain, occurred within 30 minutes of public disclosure and adds to SharpLink’s existing ETH treasury of 360,900 ETH, valued at approximately $1.34 billion [1]. This move follows the firm’s strategic hiring of Joseph Chalom, former head of digital asset strategy at BlackRock, as co-CEO, reinforcing its alignment with traditional finance (TradFi) principles [2]. The transfer has coincided with Ethereum’s 4% price increase to $3,740, pushing its total market cap above $450 billion and driving open interest in futures to $5.05 billion [1].

The use of USDC, a U.S. dollar-pegged stablecoin, underscores institutional confidence in Ethereum as a liquidity conduit. By converting stablecoin reserves into ETH, SharpLink mirrors strategies employed by firms like MicroStrategy, which leverages stablecoins to purchase undervalued assets [3]. However, Ethereum’s unique position as a platform for decentralized applications (dApps) and institutional-grade infrastructure differentiates this approach. Analysts note that stablecoin adoption by corporations, particularly regulated instruments like USDC, is bridging the gap between traditional and crypto markets, enabling seamless cross-border asset allocations [3].

The transaction also highlights Ethereum’s appeal to institutional investors. Over the past month, Ethereum has attracted $594 million in net inflows into spot ETFs, reflecting growing demand [4]. While the $145 million transfer predates this trend, it aligns with broader market dynamics. The scale of the deposit suggests a long-term commitment to Ethereum’s ecosystem, with observers speculating that SharpLink’s next purchase could intensify competition with Bitcoin, especially if increased institutional adoption tightens ETH’s supply [5].

SharpLink’s recent inactivity on-chain has fueled speculation about a significant accumulation phase. The firm’s wallet had not moved for weeks, leading analysts to anticipate a major ETH purchase. Chalom’s expertise in launching crypto-focused initiatives, including BlackRock’s iShares Bitcoin Trust (IBIT) and Ethereum Trust (ETHA), further validates the firm’s strategic pivot [2]. His emphasis on Ethereum’s role in shaping “financial infrastructure and decentralized finance” aligns with the network’s post-merge upgrades, which have enhanced scalability and energy efficiency [1].

The market has responded favorably to SharpLink’s moves. Despite a 9% weekly decline in SBET stock, the firm’s shares remain up over 100% this month, driven by its aggressive ETH strategy and leadership changes [1]. Ethereum’s price trajectory appears supported by institutional activity, with the recent USDC transfer reinforcing its status as a cornerstone of corporate treasury strategies in the digital asset space. Investors will likely monitor SharpLink’s wallet for further signs of accumulation, though the exact allocation of the $145 million remains unconfirmed.

Sources:

[1] Blockchain News. SharpLink Transfers $145M USDC to Galaxy Digital OTC for ETH Purchase. https://blockchain.news/flashnews/sharplink-transfers-145m-usdc-to-galaxy-digital-otc-for-eth-purchase-major-whale-movement-signals-bullish-eth-momentum

[2] Coinpedia. SharpLink Preps Big ETH Buy with $145M Transfer and New BlackRock Co-CEO. https://coinpedia.org/news/sharplink-preps-big-eth-buy-with-145m-transfer-and-new-blackrock-co-ceo/

[3] AInvest. Ethereum News Today: SharpLink SBET’s $145M USDC Inflow—MicroStrategy-Style Ethereum Strategy. https://www.ainvest.com/news/ethereum-news-today-sharplink-sbet-145m-usdc-inflow-microstrategy-style-ethereum-strategy-2507/

[4] Blockscholes Research. Ethereum Spot ETF Inflows. https://www.blockscholes.com/research

[5] Coindoo. Here’s Why Ethereum Might Outshine Bitcoin in the Coming Months. https://coindoo.com/heres-why-ethereum-might-outshine-bitcoin-in-the-coming-months-according-to-mike-novogratz/