Ether’s Market Resurgence

Spot ether ETFs have witnessed a remarkable rise in demand, with cumulative net inflows now exceeding $13 billion, a significant increase from $2.6 billion in April, according to Citi’s report.

• Ether’s performance: Ether has surged nearly 30% year-to-date, challenging bitcoin’s dominance in the market as capital allocation shifts.
• Institutional investment: Institutional inflows have hastened, pushing spot ETH ETF inflows beyond $13 billion, while treasury firms have raised holdings to around $10 billion.
• On-chain dynamics: Large wallets are accumulating ether off exchanges, signifying a tightening supply along with enhanced network activity.

As ether recuperates from a drawdown of over 55% earlier this year, it is gaining market share rather than losing it, marking a significant turnaround. Citi’s analysts highlighted a balance shift in the dynamics between larger and smaller investors, indicating a potential sustained growth amid supportive regulatory frameworks and optimistic market sentiments.