Ethereum is currently the second-largest cryptocurrency in the market and drawing a lot of attention in the last few days. ETH-based investment options have welcomed $113 million to the market last week, which represents nearly 50% of the total cryptocurrency inflows.
This rise of cryptocurrency can be traced back to the start of 2021. In the first quarter of the year, all cryptocurrencies attracted $4.2 billion inflows in total which is the highest level on record. The main reason for that rise is the increasing interest of institutional investors. As Ethereum has been recently upgraded as Ethereum 2.0 and stated that they will work more on the ecological side of the technology, institutional investors have realized that it may be a good option to long ETH in large amounts.
Digital investment instruments ended Friday with crypto assets worth over $55 billion under management. The institutional investor with the largest crypto assets is still Grayscale. The value of the holdings possessed by the company is equal to $43 billion.
Ethereum and its features allowing DeFi applications have impressed all the actors in financial markets. According to both retail and institutional investors, the cryptocurrency can serve as a store of value. The ETH price has increased by more than 120% since the beginning of the year. Grayscale controls 3.18 million ETH worth over $5.5 billion and it continues to accumulate Ethereum at a higher pace. İn the last 30 days, the company bought more than 48,000 ETH and the CEO of the company stated that their interest is still fresh and they are ready to purchase more.
The main concern for Ethereum would be the decreasing liquidity. ETH whales are planning to hold the digital asset, and its supply at major exchanges is running down. According to the latest reports, more than 68% of the total Ethereum supply belongs to ETH whales, the users with more than 10,000 ETH.Share this article