Source: BeInCrypto
Compiled by: Blockchain Knight
The inflow of Ethereum ETFs has surged, with corporate investment in the past six weeks surpassing the total of the previous 12 months. In July, Ethereum-related products clearly outperformed Bitcoin.
Corporate capital inflows are maintaining this trend: large-scale buying on dips is pushing Ethereum into new market segments. BitMine's massive investment has become a key driver of this process.
From recent performance, the Ethereum ETF has received widespread recognition. Last month, its size briefly exceeded that of Bitcoin-related products, continuously driving institutional capital inflows, although Bitcoin ETFs still hold a larger overall market share.
However, two analysts from Bloomberg have questioned this 'suboptimal' positioning, rating the entire Ethereum ETF category as the 'monthly ETF' of July. After a slow start, Ethereum ETFs have finally seen explosive growth, with analysts believing it is now Bitcoin's turn to catch up.
Eric Balchunas attributes the institutional recognition of Ethereum ETFs to the largest Ethereum treasury company, BitMine. Currently, BitMine holds $6.6 billion in ETH, and its actions are driving corporate capital to seize opportunities for buying on dips. Jamie Elkaleh, Chief Marketing Officer of Bitget Wallet, interpreted the significance of this phenomenon in an exclusive interview with BeInCrypto:
The recent rise of Ethereum has triggered profit-taking, indicating that traders are locking in gains while waiting for macro clarity. It’s worth noting that, despite short-term volatility, institutional inflows into ETFs... continue to provide structural buying. This means that even if short-term price trends remain turbulent, the underlying demand is stronger than in previous cycles.
In other words, the massive capital inflows into Ethereum ETFs are driving market changes themselves. Before this summer, Ethereum lacked a narrative comparable to Bitcoin's 'digital gold', but now this institutional support has gradually been established, creating new opportunities in market segments that did not exist before.
To give two examples: ETF wholesalers can now scale up the launch of Ethereum-related products, opening up potential markets; NEOS’s high-yield Ethereum ETF can also rely on corporate capital inflows to provide investors with higher-risk trading options. In these areas, a positive cycle of 'success breeds more success' is forming.
