- Treasury companies and spot ETFs purchased massive volumes of ETH.
- Ethereum surged over 85% in less than two months.
- Institutional investors are significantly influencing the Ethereum market.
According to ETF expert Nate Geraci, a powerful trend has emerged in the Ethereum market over the past two months: massive accumulation by institutional players.
In a post on X, Geraci highlighted that two groups, companies adding ETH to their corporate treasuries and the new spot ETH ETFs, have each bought approximately 1.6% of the total ETH supply since the start of June. Combined, that means institutional players have acquired a staggering 3.2% of all Ethereum in circulation in just over two months.
Institutions Have Bought 3.2% of All ETH Since June
This institutional buying spree helps explain the flagship altcoin’s recent rally, which saw it climb over 85% in less than two months. The demand from spot ETH ETFs was particularly strong in July, which was the beginning of Q3. Data from SoSoValue shows that these ETFs saw a net inflow of $5.43 billion in July alone.
But why was July so big? That $5.43 billion ETF inflow was a major event. CoinEdition report has broken down how the ETF’s July’s haul was bigger than all prior months combined.
A “Double-Edged Sword” for the Market?
While many crypto users perceive Geraci’s observation as a positive development in terms of increasing ETH demand, a sector of the crypto community views it as a potential black hole.
They think that having a small group of investors take over control of such a portion over a short period could be dangerous when fortunes reverse.
One such crypto user highlighted the possibility of such investors engaging in a supply spree that could inject massive pressure on the cryptocurrency.
However, the mood around the ecosystem is more of excitement and optimism, with most users viewing the influx of institutional investors as a move that will support Ethereum’s long-term growth.
Market Rewind: These ETH inflows don’t happen in a vacuum. CoinEdition previously covered how a geopolitical event drove cash into both Bitcoin and Ethereum ETFs.
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