Since their debut in the US in July 2024, Ether spot exchange-traded funds (ETFs) have experienced consistent growth, alongside a rise in corporate treasuries associated with the token.
This month, inflows into Ether (ETH) funds surged by 44%, increasing from $9.5 billion on August 1 to $13.7 billion on August 28, according to the cryptocurrency research platform SoSoValue. Market observers attribute this momentum to a renewed institutional demand.
“After a prolonged period of relative underperformance compared to Bitcoin and deteriorating investor sentiment, Ethereum has recently seen a significant resurgence in recognition for its adoption rate and value proposition,” stated Sygnum Chief Investment Officer Fabian Dori to Cointelegraph.
Investors’ appetites are being fueled by an increasing number of companies adopting ETH-based corporate treasuries. While Bitcoin (BTC) remains the cryptocurrency most commonly linked with treasury firms, Ether treasuries among corporations are on the rise.
According to StrategicETHReserve, companies currently hold 4.4 million ETH, representing 3.7% of the total supply, valued at $19.18 billion as of now.
“A key driver behind this is regulation, such as the Genius Act, providing traditional investors the confidence to build infrastructure and use cases with this new technology,” Dori remarked.
Boosted by demand from corporate treasuries and ETFs, Ether’s price rose nearly 27% in August, reaching $4,316 on Friday, up from approximately $3,406 on August 1, as noted by Cointelegraph Markets Pro.
“Treasury companies are significant purchasers,” stated Geoffrey Kendrick, Standard Chartered’s global head of digital assets research, to Cointelegraph. “They are unlikely to sell. So, the impact will endure,”
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Ethereum roadmap entering ‘critical inflection point’
Industry analysts express optimism regarding Ethereum’s future but indicate that the upcoming months will be pivotal for the network’s ecosystem. “Ethereum’s roadmap is reaching a critical inflection point,” an analyst from Bitfinex informed Cointelegraph.
“The upcoming upgrades are expected to greatly enhance smart contract efficiency and validator usability, improving Ethereum’s competitiveness as an institutional settlement layer,” they added, mentioning:
“At the same time, restaking through EigenLayer and the increase in L2 rollup activities are generating genuine protocol revenues and drawing developer interest back to the ecosystem.”
Ethereum is consistently progressing with its upgrade schedule, achieving key milestones for scalability and long-term global utility.
The Pectra upgrade in May raised validator limits and incorporated account abstraction, with the upcoming Fusaka hard fork set for November 5 to implement PeerDAS, easing node workloads and enhancing data availability.
However, Ethereum’s revenue generation has yet to align with this growth. Over the past 30 days, the network generated $41.9 million in fee revenue, a mere fraction compared to Tron’s $433.9 million during the same time.
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