Institutional Interest in Ethereum Declines Amid Market Volatility
The price of Ethereum (ETH) has taken a hit in recent days, with institutional interest waning and outflows from the altcoin on the rise. Despite a surge in institutional investment following the approval of spot Bitcoin exchange-traded funds (ETFs) earlier this year, Ethereum has seen a decline in institutional support.
According to a recent CoinShares report, Ethereum experienced $22 million in outflows last week, totaling $51.3 million in withdrawals for the month. This comes as investors have become hesitant due to stalled price momentum and macroeconomic factors affecting the market.
Comparisons between Ethereum and Bitcoin Assets Under Management (AUM) growth show that ETH AUM is not expanding as rapidly as BTC did last year, despite expectations for spot ETFs. Currently, Ethereum institutional products stand at $1 billion, reflecting a slower growth rate compared to Bitcoin.
The price of Ethereum currently stands at $2,950, reflecting a 13% drop this week and a 15% drop this month. However, bullish investors remain optimistic about a potential price rally if a spot ETF for ETH is approved in the US. Additionally, a general uptrend in the market and increased activity in decentralized finance (DeFi) could drive institutional inflows into Ethereum in the future.
Overall, while the recent decline in Ethereum’s price may be concerning, the market remains hopeful for a turnaround fueled by institutional support and positive market trends. Stay tuned for updates on Ethereum’s price movements and institutional interest in the coming weeks.
