On-Chain Data Points to Growing Institutional Interest in ETH Amid Sharp Price Surge

A wallet believed to be linked to World Liberty Financial, a cryptocurrency project backed by President Donald Trump, has purchased millions worth of Ethereum following the coin’s meteoric jump on Thursday. According to a post by on-chain tracker Lookonchain, the address bought 1,587 Aave Ethereum WETH (aEthWETH), worth $3.5 million, in a series of transactions. This purchase comes amid broader institutional accumulation of the second-largest cryptocurrency, as firms like Abraxas Capital withdrew over 61,401 ETH worth more than $116 million from exchanges over the last two days. Ethereum’s price has surged sharply by more than 20% in 24 hours, reaching $2,334.63, a level not seen since late February.

World Liberty’s Trump Family Connections and Investment Strategy

World Liberty Financial is a decentralized finance (DeFi) project that has close ties to the Trump family, although it officially states that none of its offerings are political or related to any political campaign. According to available information, a Trump-affiliated organization holds a 60% share in the platform’s parent firm, while Eric Trump sits on the board.

“This Ethereum purchase may signal a long-term investment strategy by World Liberty, based on expectations of continued ETH price growth,” comments Alex Petrov, a cryptocurrency market analyst. “Interestingly, they chose aEthWETH, a token that represents ETH on the Aave platform and is used for lending and borrowing within its decentralized finance platform. This could indicate plans not just to hold ETH, but to generate passive income through DeFi protocols.”

aEthWETH represents a one-to-one equivalent of ETH on the Ethereum blockchain and is used in the Aave ecosystem, one of the largest decentralized lending protocols. The choice of this specific instrument may suggest that the World Liberty team is well-versed in the DeFi space and actively seeking ways to maximize returns on their crypto assets.

Benzinga reached out to World Liberty Financial for comment on these trades but did not receive a response by the time of publication. Nevertheless, such a large purchase coinciding with a sharp increase in ETH price raises questions about how connected the project is to short-term market movements and whether it has access to insider information.

“The very fact that a project associated with the sitting US President is investing millions in cryptocurrencies could be viewed as a strong signal of confidence in this asset class,” notes Maria Ivanova, partner at investment firm Blockchain Capital. “Especially considering that Trump was previously known for his criticism of Bitcoin and other cryptocurrencies.”

Institutional Interest in Ethereum on the Rise

World Liberty’s purchase occurs against a backdrop of broader institutional interest in Ethereum. According to Lookonchain data, Abraxas Capital, a digital assets investment firm, pulled out 61,401 ETH, valued at over $116 million, from exchanges over the last two days. Such behavior is often interpreted as accumulation with the intention of long-term holding.

“Withdrawal of cryptocurrency from centralized exchanges is typically viewed as a bullish signal,” explains Dmitry Volkov, head of analytics at crypto investment company Digital Horizons. “When institutional investors move such significant amounts to cold wallets, it indicates their long-term belief in the asset and unwillingness to sell in the near future.”

Additionally, data from IntoTheBlock shows that the balance held by long-term ETH holders rose 0.02% in the last 24 hours, implying a broader accumulation sentiment among investors.

This institutional interest is particularly notable in the wake of the Ethereum Pectra upgrade, which was successfully activated last week. The upgrade aims to improve network efficiency and may potentially increase its attractiveness to institutional investors.

“The Pectra upgrade represents a significant technical achievement for Ethereum,” emphasizes Sergei Kuznetsov, a technical analyst of blockchain projects. “It not only improves network performance but also lays the foundation for future upgrades that could substantially enhance scalability and reduce transaction fees.”

Market Implications and the Future of ETH

The accumulation of Ethereum by major players, including a Trump-linked project, comes after a sharp rise in the cryptocurrency’s price. ETH broke out following weeks of sideways trading, hitting levels not seen since the last week of February. The trading volume has surged an impressive 150% to $51.35 billion in the last 24 hours.

“A 20 percent increase in one day is a significant movement even for the crypto market,” comments Elena Sokolova, market analyst from CryptoView Research. “Such a sharp rise typically indicates an exit from an accumulation period and may herald the formation of a new uptrend, especially if supported by institutional purchases.”

Despite the recent rise, ETH is still trading significantly down for the year—31% lower compared to the beginning of the year. This creates a potentially attractive entry point for long-term investors who believe in the project’s fundamental value.

“Ethereum remains the primary blockchain for decentralized finance, NFTs, and many other applications,” notes Anna Novikova, crypto strategist at Digital Asset Management. “With the transition to Proof-of-Stake and ongoing network upgrades, its position as the leading smart contract platform is only strengthening. Institutional investors, including projects linked to political figures, see this long-term perspective.”

Interestingly, the Ethereum purchase by a Trump-linked project comes amid discussions about cryptocurrency policy under the current administration. Anthony Scaramucci, former White House communications director under Trump, recently compared Trump’s crypto policy to a Mar-a-Lago buffet: “You have to eat everything at the table.” This comment suggests a comprehensive approach to regulating and possibly embracing various aspects of the crypto industry.

Given the institutional interest and technical improvements to the network, many analysts remain optimistic about Ethereum’s long-term prospects, despite its short-term volatility. The purchase of ETH by a project linked to the sitting US President can be viewed as yet another indicator of cryptocurrencies’ growing acceptance in the traditional financial and political establishment.