Ethereum (ETH) investors could increase their assets tenfold in the near future and hold 10% of the total circulating Ethereum.
The interest of institutional investors in Ethereum is rapidly increasing. According to a report published by Geoffrey Kendrick, Director of Digital Assets Research at Standard Chartered, in the last two months, companies have purchased 1.26 million ETH, which corresponds to 1% of the circulating Ethereum. This figure approaches the total purchase of 2 million ETH by Ethereum ETFs in the same period, indicating a new record.
According to Rapora, the interest of companies investing in Ethereum is still at the beginning level, and these investments are expected to increase tenfold in a short time. Thus, institutional Ethereum assets could reach 10% of the total circulating Ethereum. In comparison, companies that invest in Bitcoin hold only 4.4% of the total Bitcoin (BTC) supply.
Advantage of Ethereum Over Bitcoin
It is stated that Ethereum is more advantageous for institutional investors compared to Bitcoin. The main reason for this is that Ethereum can provide an annual return of approximately 3% through staking and offers access to decentralized finance (DeFi) products. Since US-based ETFs cannot access these types of earnings, investors prefer to invest in Ethereum through publicly traded companies.
The leading company in Ethereum investments is BitMine. The company's goal is to purchase 5% of the circulating Ethereum alone, which is approximately 6 million ETH. Besides BitMine, companies such as SharpLink Gaming, BTCS, and GameSquare Holdings are also standing out with significant Ethereum purchases.
Recently, Ethereum has performed better than Bitcoin. The ETH/BTC ratio has been rising since April, and Ethereum is currently trading at around 3,850 dollars. According to Kendrick, if this investment flow continues, the price of Ethereum could surpass the 4,000 dollar level by the end of the year.$ETH