According to CryptoPotato, the price of Ether has increased by approximately 15% within a 30-day period, with Ethereum now trading above $2,000. This renewed optimism has pushed the year-to-date gain in ETH price to almost 70%. New data indicates a surge in institutional holdings in the crypto asset.
CryptoQuant reports a significant uptick in institutional holdings of Ethereum, both through direct ownership and indirect channels such as trusts, ETFs, and funds, in November. This increase coincided with ETH’s price stabilizing in the range of $1.8k to $1.9k. Heightened institutional interest suggests growing confidence among investors in Ethereum’s long-term value and promising prospects for market expansion.
The growing appeal of Ethereum to institutional investors is reinforced by its ongoing technical advancements. The implementation of Ethereum 2.0 upgrades and the enhancement of smart contract functionalities have played a significant role in attracting institutional attention, highlighting the crypto-asset’s attractiveness as a long-term investment opportunity.
Institutional investor interest was sparked at the beginning of the month when the US Securities and Exchange Commission (SEC) acknowledged Grayscale Investment’s bid to transform its Ethereum trust into an ETF. This SEC action stems from a specific court mandate instructing a review of Grayscale’s pending ETF applications. As of now, there is no official confirmation regarding the approval of a spot cryptocurrency ETF.
Market optimism surged when BlackRock, the world’s largest asset manager, formally submitted an application for a spot Ether ETF on November 9. This confirmation led to the Ether price breaking through the $2,000 resistance, marking a six-month high on the same date. BlackRock officially lodged the S-1 form with the SEC on November 16. Experts predict the SEC will approve a spot Bitcoin ETF in early 2024, and following this, approval for a spot Ether ETF is widely expected to follow quickly, according to various crypto analysts.
