The cryptocurrency landscape continues to evolve with key on-chain movements from major players like Grayscale, DWF Labs, and the Ethereum Foundation. This article dives into the latest developments, including Grayscale’s Bitcoin ETF turning positive for the first time in 2025, DWF Labs’ strategic asset transfers, and ongoing funding activities by the Ethereum Foundation. Whether you're tracking institutional behavior or analyzing market sentiment, these insights offer valuable context for understanding current crypto dynamics.
DWF Labs Transfers 55 Million VELO to Bybit
One of the most notable moves this week comes from DWF Labs, a well-known crypto investment firm. On multiple dates — April 8, April 30, May 6, and May 7 — DWF transferred a total of 55 million VELO tokens to Bybit Exchange at an average price of $0.0187 per token.
This follows an initial acquisition back on July 14, 2023, when DWF received 75 million VELO directly from the project team at a significantly lower average cost of $0.003. After these recent transfers, DWF still holds approximately 20 million VELO in reserve.
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These actions suggest a strategic decision to increase liquidity exposure on a major exchange, potentially positioning for future trading or distribution. While not necessarily indicative of immediate selling pressure, the concentration of transfers to Bybit warrants attention from market observers tracking VELO price trends and exchange inflows.
Andrei Grachev Linked to New PROM Purchases
Andrei Grachev, Head of DWF Labs, appears to be increasing his exposure to PROM (Prometheum), another emerging blockchain asset. A wallet starting with 0x3A2, linked to early PROM holdings, withdrew 52,090 PROM from Binance on December 8, 2023, at an average price of $4.863.
Later, on February 14, 2024, 49,965 PROM were transferred to an address starting with 0xf689 — believed to be associated with Andrei Grachev. The activity intensified this week, with two additional withdrawals:
- 62,316 PROM withdrawn on May 7
- 70,000 PROM withdrawn on May 8
Both at an average price of around $9.75.
The wallet now holds a total of 135,222 PROM, with ongoing speculation about whether more will be moved to the suspected Grachev-controlled address.
This accumulation pattern suggests strong confidence in the asset’s long-term potential, especially given the rising entry price. For traders monitoring smart money movements, this is a clear signal to watch both PROM on-chain flow and upcoming exchange listings or announcements.
Grayscale Bitcoin ETF Sees First Net Inflow in 2025
In a significant turnaround for market sentiment, Grayscale's Bitcoin Trust (GBTC) recorded its first net inflow since the start of 2025. Data from Coinglass and on-chain analytics platform 21st.Capital shows that as of May 3, GBTC shifted from consistent outflows to positive net inflows — a trend that continued into the following Monday.
Historically, GBTC had been experiencing sustained outflows after its conversion into an ETF, largely due to institutional selling and arbitrage following approval. However, this recent shift indicates that:
- Selling pressure from Grayscale may be easing
- New institutional demand could be entering via GBTC
- Investors are regaining confidence in Bitcoin’s medium-term outlook
This change is further supported by reduced BTC transfers from Grayscale wallets to exchanges like Coinbase — a sign that the trust may no longer be liquidating holdings at scale and might even be beginning to accumulate.
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Such developments are critical for understanding broader Bitcoin ETF trends, especially as U.S. spot Bitcoin ETFs continue shaping market structure and investor behavior.
Ethereum Foundation Sells ETH for Project Grants
On May 8, an address tagged as the Ethereum Foundation (0xde0...) transferred 1,000 ETH to a multi-sig wallet (0xbC9...), marking part of its ongoing funding cycle for ecosystem development.
Transaction Flow:
- The Ethereum Foundation sends ETH to a grant-focused multi-sig wallet
- Funds are then routed through an intermediate address (
0x180c) - Final sale executed via CowSwap, a decentralized exchange aggregator
Purpose:
These transactions are not speculative or profit-driven. Instead, they serve to convert ETH into stablecoins or fiat equivalents to fund approved projects under the Ethereum ecosystem — including developer tools, research initiatives, and infrastructure upgrades.
Yellow arrows in on-chain data represent fund allocation from the Foundation to grant providers; red arrows indicate downstream sales via decentralized platforms like CowSwap.
While large ETH movements can sometimes trigger market concern, this activity reflects normal operational funding processes. There is no evidence of panic selling or financial distress — only structured support for innovation within the Ethereum ecosystem.
Key Takeaways and Market Implications
Let’s summarize the major takeaways from this week’s chain activity:
- DWF Labs continues strategic positioning by moving large volumes of VELO to Bybit, likely preparing for trading or listing opportunities.
- Andrei Grachev appears to be accumulating PROM at higher prices, signaling bullish conviction.
- Grayscale’s GBTC has turned positive — a potential inflection point indicating renewed institutional interest in Bitcoin.
- The Ethereum Foundation remains active in funding development through transparent, decentralized mechanisms — reinforcing long-term network sustainability.
These movements collectively highlight how macro-level decisions by influential entities shape market sentiment and liquidity distribution.
Frequently Asked Questions (FAQ)
Q: What does a net inflow mean for Grayscale's GBTC?
A: A net inflow means more capital is entering the ETF than leaving it. For GBTC, this suggests decreasing selling pressure and possible renewed investor confidence in Bitcoin.
Q: Is DWF selling VELO a bearish signal?
A: Not necessarily. Transferring tokens to an exchange doesn’t always mean immediate selling. It could indicate preparation for listing, staking, or strategic trading. Monitor actual sell-side volume for confirmation.
Q: Why is the Ethereum Foundation selling ETH?
A: The sales are part of routine operations to fund ecosystem grants. ETH is converted via decentralized platforms like CowSwap to support developers and projects — not due to market pessimism.
Q: How can I track whale movements like these?
A: Use blockchain explorers and analytics platforms that monitor large wallet activities. Watching known addresses helps anticipate potential market shifts.
Q: Should I follow DWF or Ethereum Foundation moves?
A: Yes — these entities often act based on deep technical and financial analysis. Their actions can serve as leading indicators, though always combine with your own research.
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Final Thoughts
This week’s on-chain activity reveals shifting tides across the crypto space — from institutional ETF dynamics to strategic plays by major investment firms and transparent funding by core protocol teams. By understanding these patterns, retail investors can better align with informed capital and avoid emotional decision-making.
As markets mature, watching where the "smart money" flows becomes increasingly important. Whether it’s tracking ETF inflows, analyzing whale wallet movements, or interpreting protocol treasury actions, staying informed is your greatest edge.
Core Keywords: Grayscale ETF, DWF Labs, Ethereum Foundation, Bitcoin ETF inflows, on-chain analysis, whale tracking, PROM token, VELO token