Ether Spot Exchange-Traded Funds (ETFs) Experience Steady Growth
Ether spot exchange-traded funds (ETFs) have shown consistent growth since their introduction in the US in July 2024, with corporate treasuries linked to the token also on the rise.
According to cryptocurrency research platform SoSoValue, inflows into Ether (ETH) funds increased by 44% this month, climbing from $9.5 billion on August 1 to $13.7 billion on August 28. Market participants believe that renewed institutional interest is driving this momentum.
“After an extended period of underperformance compared to Bitcoin and souring investor sentiment, Ethereum has recently seen a notable revival in its recognition regarding adoption rate and value proposition,” stated Sygnum Chief Investment Officer Fabian Dori in an interview.
A key factor influencing investor interest is the increasing number of companies that are adopting ETH-based corporate treasuries. While Bitcoin (BTC) has been the primary cryptocurrency associated with treasury companies, interest in Ether treasuries from corporations is clearly gaining traction.
As reported by StrategicETHReserve, companies currently hold 4.4 million ETH, which constitutes 3.7% of the total supply and is valued at $19.18 billion as of this writing.
“A strong driver for that is regulation such as the Genius Act that provides traditional investors with the confidence to build infrastructure and use cases on this new technology,” added Dori.
Backed by investor demand through corporate treasuries and ETFs, Ether’s price rose nearly 27% in August, reaching $4,316 on Friday from around $3,406 on August 1st.
“Treasury companies are a massive buyer,” remarked Geoffrey Kendrick, Standard Chartered’s global head of digital assets research. “They won’t sell. So, yes, the impact will stay.”
Observers from the industry are optimistic about Ethereum’s future but stress that the next few months will be crucial for the network’s ecosystem. “Ethereum’s roadmap is entering a critical inflection point,” Bitfinex said.
“The upcoming upgrades are expected to greatly enhance smart contract efficiency and validator usability, bolstering Ethereum’s attractiveness as an institutional settlement layer,” they explained, adding:
“Ethereum is steadily progressing with its upgrade schedule, achieving key milestones aimed at scalability and long-term global utility.”
The Pectra upgrade implemented in May expanded validator limits and introduced account abstraction, while the Fusaka hard fork is scheduled for November 5, which will incorporate PeerDAS to lighten node workloads and enhance data availability.
On the other hand, Ethereum’s revenue generation has not kept pace with this momentum. Over the past 30 days, the network has generated $41.9 million in fee revenue, significantly less than Tron’s $433.9 million in the same timeframe.
