Vitalik Buterin Sells Ethereum Amid ETF Outflows

• Lyla Velez
• February 5, 2026
• News
• 0 Comments

Ethereum’s co-founder, Vitalik Buterin’s decision to divest ETH holdings during recent ETF outflows, is raising questions about its market implications. This activity is amid volatility in the Ethereum market, affecting both institutional and retail investors.

Vitalik Buterin sold approximately 2,961 ETH, valued at over $6.6 million, during record ETF withdrawals, notably from BlackRock and Fidelity. The spot price averaged $2,228 per ETH over the three-day sale period, showing market volatility.

The sale aligns with significant Ethereum ETF outflows, predominantly from BlackRock’s ETHA (near $59 million) and Fidelity’s FETH (over $20 million). Buterin’s sale follows his recent critique of scaling issues within the Ethereum network.

Ethereum prices dropped to a range of $2,127–2,300, significantly impacting the market due to Buterin’s ETH transactions and ETF outflows. Crypto analyst, Lookonchain tweeted:

“vitalik.eth(@VitalikButerin) is dumping $ETH fast! Over the past 3 days, Vitalik has sold 2,961.5 $ETH($6.6M) at an average price of $2,228 — and the selling is still ongoing.” – Lookonchain, On-chain Analyst

Ethereum’s Total Value Locked (TVL) in DeFi fell below $100 billion, affected by Buterin’s sales and ETF outflows. This trend impacts various decentralized financial systems and the broader crypto ecosystem, signaling instability and reduced confidence.

In recent weeks, Buterin has withdrawn over 16,000 ETH, suggesting strategic shifts focusing on network developments. Historical trends show ETH sales align with performance upgrades and donations, as seen in existing funding patterns and price trends.