The increased bullish sentiment has led to a roughly 15% increase in the price of Ether in a 30-day period. The fact that ethereum is now trading above $2,000 suggests a growing focus on the asset, and this renewed optimism has driven the year-to-date gain in eth price to nearly 70%.
New data suggests an increase in institutional holdings of crypto assets.
Rising Institutional ethereum Holdings
According to CryptoQuant, in November there has been a notable increase in institutional holdings of ethereum, both through direct ownership and indirect channels such as trusts, ETFs, and funds. This increase coincided with eth price stability in the range of $1.8k to $1.9k.
Such high institutional interest suggests growing confidence among investors in the long-term value of ethereum and the promising prospects for market expansion, according to the ethereum-Holdings?utm_source=telegram&utm_medium=sns&utm_campaign=Quicktake&utm_content=Woominkyu” target=”_blank” rel=”noopener” data-wpel-link=”external”>analysis.
“It reflects their strong belief in the long-term value of ethereum and the market’s growth potential.”
The latest analysis also suggested that ethereum‘s growing appeal to institutional investors is bolstered by its continued technical advancements. The implementation of ethereum 2.0 upgrades and improved smart contract functionalities have played an important role in attracting institutional attention, underscoring the cryptoasset’s appeal as a long-term investment opportunity.
ethereum ETF Hype
The stir among institutional investors began earlier this month when the US Securities and Exchange Commission (SEC) recognized Grayscale Investment’s bid to transform its ethereum trust into an ETF.
This SEC action arises from a specific court order ordering a review of Grayscale’s pending ETF applications. At the moment, there is no official confirmation regarding the approval of a spot cryptocurrency ETF.
Market optimism increased when BlackRock, the world’s largest asset manager, formally filed an application for an Ether spot ETF on November 9. This confirmation led the price of Ether to break through the $2,000 resistance, marking a six-month high on the same date. BlackRock officially filed Form S-1 with the SEC on November 16.
Experts predict that the SEC will approve a spot bitcoin ETF in early 2024, and after this, the approval of a spot Ether ETF is expected to follow quickly, according to several crypto analysts.
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