Ethereum Surges 1.94% as Institutional Interest in ETFs Hits $10 Billion

Ethereum's latest price was $3693.55, up 1.945% in the last 24 hours. This surge in price is closely linked to the growing interest in Ethereum funds, particularly the BlackRock’s iShares Ethereum Trust (ETHA), which has reached $10 billion in assets. This milestone is significant as it is the third-fastest ascent to this threshold in ETF history, following only the iShares Bitcoin Trust and Fidelity Wise Origin Bitcoin Fundspot Bitcoin funds. ETHA needed just 251 days to reach this milestone, highlighting the surging investor appetite for Ethereum. The fund doubled in size over a 10-day period, adding $5 billion in assets, which is the shortest period ever for a fund to grow from $5 billion to $10 billion. This rapid growth underscores the robust interest and inflows into Ethereum ETFs.

Analysts have attributed the increase in ETHA’s assets to growing interest in Ethereum funds, although the exact cause and effect relationship between flows and price movements remains unclear. The inflow surge has been closely intertwined with a dramatic spike in Ethereum’s asset, which approached its highest point since December. The legislation is expected to benefit Ethereum, the dominant platform for stablecoin transactions. The nine U.S.-listed Ethereum ETFs generated more than $1.1 billion in inflows just over the first three days of this week alone, according to U.K. asset manager Farside Investors. This surge in inflows signals that the demand for Ethereum ETFs has finally arrived, despite the funds' performance falling short of the dramatic success of the 12 Bitcoin products that now hold more than $140 billion in AUM.

GameSquare, a digital media company with an Ethereum treasury strategy, acquired a rare CryptoPunk NFT for $5.15 million worth of preferred shares. The Ethereum-based NFT was previously owned by Robert Leshner, who founded the decentralized lending protocol Compound and now serves as CEO of crypto asset manager Superstate. The CryptoPunk, featuring “Cowboy Hat” and “Ape” as traits, is among the 24 rarest NFTs from the iconic collection of 10,000 pixelated profile pictures. GameSquare plans to leverage the NFT as a “strategic treasury asset,” “cultural symbol,” and yield-bearing asset. The company is among the first publicly traded companies to announce that it had purchased a pricey NFT as a way to maximize shareholder value. GameSquare’s stock has rallied 72% to $1.30 over the past month, rising alongside Ethereum’s price. The company’s profile picture on X showed the CryptoPunk purchased from Leshner, but a company spokesman told Decrypt that the NFT is more than a mascot. “There’s nothing more O.G. in this space than a CryptoPunk,” they said. “A Punk is a marker that you’ve been here, you’ve built through the cycles, and you’re committed to the ecosystem.”

GameSquare’s announcement follows a flurry of CryptoPunk sales earlier this week, which generated levels of NFT trading volume not seen in months. On Sunday, $13.6 million worth of CryptoPunks changed hands through a dedicated marketplace for the NFTs. As of Thursday, the company said that it owned around 12,900 ETH that’s currently worth $48 million. And under recent authorization from its board of directors, the company said it can purchase up to $250 million worth of digital assets. GameSquare owns several companies popular with the esports world, including the gaming organization FaZe Clan. It also owns a marketing agency and production studio. The CryptoPunk purchased by GameSquare was transferred to a new owner on Thursday, blockchain data shows. The digital wallet that received the NFT held 242 others, including ones created by digital artists Beeple, Snowfro, Justin Aversano, and Sam Spratt. The digital wallet also held a Rare Pepe and an NFT from Tom Sachs’ Rocket Factory. “The wallet is managed under our treasury program in strategic partnership with Dialectic,” the GameSquare spokesperson said. “ETH custody, NFT custody, and yield strategy are all part of the same structure, housed under the Dialectic umbrella.”

BitMine Immersion Technologies has emerged as the largest corporate holder of Ethereum, boasting a treasury of 566,776 ETH. The NYSE-listed mining firm has strategically shifted focus from Bitcoin to Ethereum, aiming to stake 5% of the total ETH supply as part of its aggressive acquisition plan. Tom Lee, chairman of BitMine’s board, emphasized the company’s commitment to expanding its Ethereum holdings, signaling a broader trend among corporations adopting digital asset treasury strategies. BitMine’s $2.1B Ethereum treasury marks a significant corporate shift, fueling ETH price gains and reflecting growing institutional interest in digital asset accumulation. BitMine’s recent $250 million private placement, closed in early July, provided the capital influx necessary to accelerate this accumulation strategy. BitMine’s shares have responded positively, reflecting investor optimism about the company’s new direction. This strategic reallocation of resources from Bitcoin to Ethereum highlights a growing corporate trend favoring Ethereum’s evolving ecosystem, particularly its transition to proof-of-stake consensus and DeFi applications.

BitMine’s record-breaking Ethereum holdings are part of a broader movement among corporations adopting digital asset treasury management strategies. Companies such as SharpLink, BitDigital, The Ether Machine, and GameSquare have also significantly increased their Ethereum reserves, with SharpLink adding over $1.3 billion in ETH to its balance sheet recently. This collective accumulation has contributed to Ethereum’s recent price surge, reversing a period of underperformance relative to Bitcoin and other blue-chip cryptocurrencies. Industry analysts attribute this trend to the increasing recognition of Ethereum’s utility beyond a store of value, including its role in decentralized finance, NFTs, and smart contract platforms. The adoption of Strategy’s digital-asset treasury playbook by these firms demonstrates a sophisticated approach to corporate finance, leveraging Ethereum’s growth potential while diversifying treasury assets. The surge in Ethereum’s price also reflects broader market dynamics, including the network’s transition to Ethereum 2.0 and the increasing adoption of staking, which reduces circulating supply and incentivizes holders. BitMine’s goal to stake a significant portion of its holdings further supports this supply-side constraint, potentially amplifying price appreciation over time. BitMine’s aggressive Ethereum acquisition strategy signals a maturation of the crypto market, where publicly traded companies are actively integrating digital assets into their corporate treasuries. This trend may encourage other firms to consider similar strategies, potentially increasing institutional participation and liquidity in the Ethereum market. For investors, BitMine’s move underscores the importance of monitoring corporate treasury activities as indicators of market sentiment and asset value. The firm’s commitment to staking also highlights the evolving utility of Ethereum beyond speculative trading, emphasizing its role in securing the network and generating yield.