Recent Institutional Frenzy for Ethereum
Ethereum's price has surged significantly, breaking the $4600 threshold on August 13, setting a new high for the year. This is mainly due to Ethereum's unique technological and ecological advantages, as well as favorable market conditions and policy factors.
On one hand, as the world's largest smart contract platform, Ethereum boasts a vast ecosystem of decentralized applications. With the completion of its 2.0 upgrade, it has transitioned to a proof-of-stake mechanism, enhancing security and scalability, while also providing a path for institutions to earn returns through staking. At the same time, as countries like the United States gradually clarify their regulatory stance toward Ethereum, and with the launch of compliant derivatives, the barriers for institutional participation have lowered, and risk control has improved.
On the other hand, from a market performance perspective, the inflow of funds into Ethereum ETFs has been very strong. Since being approved for listing in July 2024, the total net inflow into spot Ethereum ETFs has reached $9.4 billion, with about $5 billion coming from the past 30 days. On August 11, a single day's net inflow even surpassed the $1 billion mark for the first time. Additionally, corporate treasuries are also actively acquiring, such as Bitmine Immersion Technologies planning to issue stocks worth up to $20 billion to purchase Ethereum, while SharpLink Gaming has raised $400 million, aiming to boost the value of its Ethereum treasury to over $3 billion.
