- Institutional investors are warming up to Ethereum ETFs.
- Millennium hedge fund accounted for over 2% of the total value of BlackRock’s ETHA.
- Growing ETF demands lead to surging ETH prices.
Institutional investors are warming up to Ethereum ETFs, as data from Kaiko Research, a digital assets market analysis platform, suggests. A recent report revealed that several traditional finance firms, including Millenium, have invested in ETH ETFs since their launch in July.
Kaiko’s report shows that investment advisors make up most of the BlackRock ETHA’s top fifteen holders, with 11 out of the top 15. However, Millennium stands out as the most prominent institutional investor.
In the context of Kaiko’s analysis, the Millenium hedge fund accounted for over 2% of the total value of BlackRock’s ETHA. All other top holders of the ETH ETF product have less than 1% of the volume in their portfolio.
Read also : ETH ETF Approval: The Catalyst for Altcoin Season 2024?
In the meantime, surging institutional investors’ activity has spurred the Ethereum ETF ecosystem, causing a notable increase in the products’ netflow. The outflow from Grayscale’s ETHE has significantly reduced, coupled with the cited influx of institutional investors. Those are the factors that led to the ecosystem’s recent resurgence.
Meanwhile, there was a surge in ETH Futures activity on the CME Group. Kaiko Research considers the surge a significant signal that investors are warming up to ETF products. ETH’s price experienced the positive energy around the ecosystem by surging nearly 12% on Wednesday.
Read also : Bitcoin and the Altcoin Season Index Explained
The recent price surge saw the flagship altcoin climb above $3,600 for the first time in the last five months. However, it is crucial to note the growing optimism around Ethereum, as reflected in the altcoin’s recent growth.
As the leading altcoin, crypto analysts often look to Ethereum to predict the start of altcoin season. The recent trend in the ETH/BTC pair, with an emerging rally and growing Ethereum dominance, suggests an altseason may be coming.
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