A large on-chain entity has converted a significant portion of BTC into ETH, bringing the exposure in Ether to approximately $3.8 billion.
The move, reported by industry sources, reignites the theme of rotation from Bitcoin to Ethereum and puts the spotlight back on derivatives, open interest, and volatility. Initial reports of the event were covered by industry outlets like Cointelegraph and analyses on execution mechanisms by specialized financial media like CoinDesk.
According to the data collected by our on-chain team updated as of September 1, 2025, the monitored address has increased its exposure in ETH to the estimated figure of $3.8 billion.
Industry analysts we collaborate with observe that similar operations, executed in short time frames, tend to be structured through OTC channels and venues with market depth to limit slippage.
The professional trading desks consulted also report that spot movements of this magnitude immediately influence the monitoring of the basis and funding in the derivatives markets.
Specialist reports tracked the sale of 4,000 BTC, followed by the purchase of approximately 96,859 ETH, with the Ether balance of the monitored address rising to an estimated position of $3.8 billion. An interesting aspect is that shortly after, the sending of an additional 1,000 BTC to Hyperliquid was reported, indicating active management between spot and derivatives.
The analyses by Cointelegraph and the summaries by BitcoinEthereumNews converge on a rotation concentrated over a short time frame, indicating a structured and planned operation. It should be noted that the final details depend on on‑chain verification.
Operations of this scale tend to shape market perception, reinforcing accumulation narratives and shifting focus to key technical levels. In this context, the leverage component on derivatives can act as an amplifier.
Large entities reduce slippage through OTC contracts and venues with adequate liquidity depth. In the case in question, interactions with Hyperliquid and OTC channels would have plausibly mitigated the market impact, as also noted by CoinDesk.
The typical effect is short-term pressure on spot prices, followed by an adjustment of leveraged positions in the derivatives market. It should be noted that the speed of execution can impact intraday volatility.
The metrics on open interest for ETH have remained high in recent weeks; some reports cite “spikes over $70 billion”, a value that might refer to the aggregate market and not just ETH.
An increase in open interest, combined with large spot flows, tends to increase volatility if the price approaches liquidation levels or zones with imbalances in funding.
After the strong rally in August, ETH has entered a phase of consolidation. In this context, purchases on pullbacks by large addresses can help stabilize sentiment and defend support areas.
Reports indicated, at the time of analysis, ETH around $4,390, with moderate movement and volumes concentrated in narrow price ranges.
The rotation from BTC to ETH by a large entity shows how the movements of long-term wallets can impact the price, derivatives, and market sentiment.
As long as the open interest remains high and spot flows remain intense, the risk of wide swings – in both directions – remains high.
It is useful to monitor on-chain tools, such as Etherscan and mempool.space, to check real-time updates, keeping in mind that quantitative data can change rapidly. For technical insights on open interest and funding, see our related guide Open interest and funding: practical guide.
