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| Ethereum Spot ETF Sparks Institutional Investor Optimism Is Higher Than Retail |
Institutional investors are showing much stronger bullish sentiment towards Ether (ETH) than retail investors, just a week before the anticipated launch of the first spot Etherum ETF.
This sentiment reflects increasing confidence and investment in Ethereum growth potential.
"Our latest report shows that institutional investors are more bullish on ETH compared to retail investors," said Head of Institutions at Bybit, Eugene Cheung, as reported by Cointelegraph.
Institutional Investor Optimism Higher
According to the report referenced by Cheung, institutional investors have significantly increased their exposure to Ether, doubling their holdings from 6.54 percent to 14.29 percent following the ETF announcement.
In contrast, retail investors' allocation increased from 7.4 percent to 9.52 percent, indicating more cautious optimism about Ethereum price.
The large capital held by institutional investors can greatly influence asset price appreciation. Therefore, their increasing interest in crypto assets like Ethereum is often seen as a bullish indicator for the token future performance.
This trend suggests that the price of Ether could experience a significant increase during the current bull cycle, potentially trading above US$6,800 by the end of 2025.
“I see traders increasing their exposure to Ethereum recently. Anticipation of ETF approval has also driven interest in assets within the broader Ethereum ecosystem. I am optimistic about the long-term price of ETH, expecting it to double in value in the next 18 months, providing an excellent risk/reward ratio for potential investors,” added Cheung.
At the time of writing, Ether prices have risen more than 11 percent on the weekly chart, trading around US$3,420. The spike marks a reversal of a month-long downtrend, according to data from Binance.
Despite this positive movement, reaching the US$6,800 mark would require an additional investment of US$412 billion to double the current market capitalization. Currently, Ether is trading at 30 percent below its all-time high price (ATH) of over US$4,800, which was reached in November 2021.
Ethereum ETF Inflows Will Be Less Than BTC ETF?
While there is significant anticipation surrounding Ethereum ETF, some experts believe they will initially see fewer inflows compared to Bitcoin ETF.
“Ether is less understood than BTC and is a younger asset, so it is still unknown how flows will shape up. In the short term, I estimate about 30 percent of BTC flows,” said Senior ETF Analyst at Bloomberg, Eric Balchunas.
However, in the long term, the launch of an Ether ETF could provide greater regulatory certainty around Ethereum, potentially allowing it to outperform Bitcoin.
“As people become more educated and the regulatory situation improves, I expect Ether will one day outperform BTC due to its rich and varied uses, especially if ETF can compound Ether native returns,” Cheun said.
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