Investment management giant Fidelity has triggered possible Ethereum (ETH) sell-off jitters after transferring $54 million worth of the asset to Coinbase.

In this transaction, a wallet previously funded by Fidelity Custody moved 10,000 ETH and 4,978 ETH to Coinbase within a five-minute window, according to Arkham Intelligence data provided on August 5.

The transfers, valued at approximately $35.77 million and $17.8 million respectively, came just hours after the same wallet received a 6,000 ETH deposit from a Fidelity-linked address. This sequence of events has raised concerns that Fidelity or a related custodian may be preparing to liquidate a significant Ethereum position.

Notably, the wallet involved in these transactions has been active over the past month, receiving inflows from major custodians and transferring assets to hot wallets associated with exchanges. The timing and size of the most recent transfers suggest institutional ETH movement, potentially ahead of market volatility or profit-taking.

While no direct sale has been confirmed, the use of Coinbase deposit addresses implies a possible intent to sell.

More funds are dumping Ethereum

Interestingly, Fidelity isn’t the only investment manager offloading Ethereum. As reported by Finbold, BlackRock’s spot Ethereum ETF recorded its largest single-day outflow since launch on August 4, with 101,975 ETH, worth about $375 million, exiting the fund. 

The sudden outflow ended a 21-day streak of inflows and slashed the fund’s ETH holdings by roughly 3%, signaling a notable shift in institutional sentiment.

As of press time, Ethereum was showing weakness, trading at $3,587, down over 3% in the past 24 hours. Over the past week, ETH has dropped by 4%.

As things stand, Ethereum needs to hold the $3,500 support level to target the $4,000 resistance.

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