- Treasuries and ETFs bagged nearly 5% of total Ethereum supply since June.
- Key catalysts include aggressive institutional accumulation and macro backdrop.
Investors are pouring into Ethereum en masse on the back of Federal Reserve Chair Jerome Powell’s dovish Jackson Hole speech.
Over the last five days, Ethereum exchange-traded funds saw almost $1.3 billion in inflows, kicking off a rebound in the cryptocurrency’s recent price performance.
Stepping back further, the enthusiasm is marked. Investors spent $3.7 billion on Ether funds, far outperforming their Bitcoin counterparts, which saw $900 million in outflows, data from the research platform SoSoValue shows.
Ether is also breaking price records. Ethereum, the second-largest cryptocurrency by market capitalisation, surged to a new all-time high of $4,955 on August 24.
Meanwhile, Ethereum treasury firms — public companies that have pivoted to adding Ether to their balance sheets — are also increasingly scooping up the cryptocurrency.
In total, these companies, as well as Ether in ETFs, have vacuumed up nearly 5% of the network’s entire token supply since June.
That’s more than double Bitcoin’s fastest quarterly accumulation pace, Geoffrey Kendrick, head of digital assets at Standard Chartered, said in a statement shared with DL News.
Kendrick now projects Ethereum could reach $7,500 by year-end, citing aggressive institutional accumulation and a supportive macro backdrop.
“It’s now being priced like a mainstream asset class.”
Dovish Powell
The optimism comes after Powell signalled a possible cut in interest rates at the Federal Reserve’s September meeting.
“Any cuts in rates are great for the crypto markets,” Charley Cooper, COO at Ava Labs, said in a statement shared with DL News.
Ethereum’s strong performance “shows it’s being priced like traditional risky assets and equities,” he said. “Lower rates increase money flow into riskier assets like crypto, making this an exciting time for the bull market.”
Markets are now pricing an 87% chance of a September cut, according to the CME FedWatch tool. That’s up about 5% from last week.
Crypto market movers
- Bitcoin is down 0.6% over the past 24 hours to trade at $111,053.
- Ethereum is up 4.1% to trade at $4,614.
What we’re reading
- AI crypto projects raise $516m in 2025 as they set out to create ‘entirely new asset classes’ — DL News
- Citigroup Explores Stablecoin and Crypto ETF Custody Services — Unchained
- Ethereum’s $127bn DeFi ecosystem is maturing — and Wall Street is taking notice— DL News
- Can PumpFun Be Dethroned? — Milk Road
- Stablecoin market on track to hit $1.2tn after Coinbase maps 20,000 ways to get there — DL News
Lance Datskoluo is DL News’ Europe-based markets correspondent. Got a tip? Email at lance@dlnews.com.
