Ethereum News Today: Institutions Now Bank on Ethereum, Holding 5% of Supply

U.S. spot Ethereum (ETH) exchange-traded funds (ETFs) have amassed a record-breaking amount of ETH, surpassing 5% of the total Ethereum supply, according to recent data. This marks a significant milestone for the digital asset class and underscores growing institutional confidence in Ethereum as a tradable asset. The latest figures, sourced from multiple tracking platforms, indicate that U.S. spot ETH ETFs recorded nearly 649,000 ETH in net inflows last week, the largest weekly influx on record, with cumulative inflows now reaching a new high of $2.9 billion [1][2].

The substantial accumulation by these ETFs has positioned institutional investors as some of the largest holders of ETH globally. For instance, BitMine Immersion Technologies disclosed that it holds over 1.5 million ETH, valued at approximately $6.6 billion, making it one of the top Ethereum treasury entities. These developments highlight a shift toward Ethereum being treated as a strategic asset for institutional investment portfolios [2].

This surge in demand has coincided with a mixed performance in ETH’s price action. While institutional inflows suggest strong long-term demand, the price of ETH has recently dropped by over 5% in the past 24 hours, settling around the $4,300 level. This decline was steeper than that of Bitcoin and XRP, according to CoinGecko. Over $190 million in long ETH positions have also been liquidated in recent trading sessions, signaling increased volatility and market pressure as investors navigate price corrections [2].

Analysts remain cautiously optimistic about Ethereum’s long-term trajectory. Technical analysis suggests that Ether may face a critical liquidity battle between the $3,900 support level and the $4,400 resistance zone. A retest of the $3,900 level could potentially flush out weaker positions and set the stage for a stronger rebound toward $4,500 and beyond. On the upside, a sustained move above $4,400 could further bolster bullish momentum and position ETH for a potential all-time high in the coming months [1].

The growing institutional appetite for ETH is also reflected in the broader market sentiment. ETF analyst Eric Balchunas of Bloomberg has noted that ETH ETFs are increasingly outperforming Bitcoin ETFs in terms of investor interest. This trend is supported by the fact that each dip in ETH has so far been met with accumulation by large institutional investors, who appear to view the current price correction as an opportunity to acquire more ETH at a lower cost [1]. These dynamics suggest that the recent volatility may be a necessary part of a broader bullish setup rather than a sign of waning confidence.

In summary, the U.S. spot ETH ETF market is experiencing unprecedented inflows, with institutions accumulating a significant portion of the Ethereum supply. While short-term price volatility persists, the long-term demand for Ethereum remains robust, supported by technical indicators and growing institutional adoption. As the market continues to evolve, the performance of these ETFs will likely serve as a key barometer for Ethereum’s integration into mainstream financial markets.

Source:

[1] ETH charts predict $3.9K retest, then a 100% rally to new highs (https://cointelegraph.com/news/eth-charts-predict-dollar3-9k-retest-then-a-100percent-rally-to-new-highs)

[2] Ethereum spot ETFs notch a record of almost $3 billion in inflows (https://sherwood.news/crypto/ethereum-spot-etfs-notch-a-record-of-almost-usd3-billion-in-inflows/)