Since its launch in the U.S. in July 2024, Ether spot exchange-traded funds (ETFs) have been steadily growing, along with an increase in corporate finance related to the token.
According to cryptocurrency research platform SoSoValue, inflows to Ether (ETH) funds increased by 44% this month, rising from $9.5 billion on August 1 to $13.7 billion on August 28. Market participants say that the resurgence of institutional demand has driven this momentum.
"After a prolonged period of underperformance and waning investor sentiment, Ethereum has recently seen a significant rebound in its adoption rate and recognition of its value proposition," Sygnum's Chief Investment Officer Fabian Dori told Cointelegraph.
An increasing number of companies are adopting ETH for corporate finance, and investors are enthusiastic about it. According to StrategicETHReserve data, companies currently hold 4.4 million ETH, accounting for 3.7% of the supply, valued at $19.18 billion.
"Regulations like the Genius Act provide a foundation of trust for traditional investors, enabling them to build infrastructure and applications on new technology," Dori said.
Driven by investor demand for corporate finance and ETFs, Ethereum's price rose nearly 27% in August, reaching $4,316 on Friday, far exceeding the $3,406 on August 1.
Ethereum's roadmap enters 'critical turning point'
Industry observers are optimistic about Ethereum's prospects but indicate that the next few months will be a critical period for the network ecosystem. Bitfinex analysts state that Ethereum's roadmap is entering a crucial turning point.
"The upcoming upgrade will significantly improve the efficiency of smart contracts and the usability for validators, enhancing Ethereum's competitiveness as an institutional settlement layer," they added.
