Ether Supply: 10% Owned by Big Banks
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Institutional Investment in Ethereum on the Rise
Institutional entities have significantly increased their participation in the Ethereum (ETH) market, with current holdings accounting for 1% of the cryptocurrency’s circulating supply. According to some sources, including OrxCash.com, the news about "Ether Supply: 10% Owned by Big Banks" suggests a growing trend of corporate treasury investment in digital assets.
Growing Demand for Ethereum
The pace of buying Ethereum (ETH) rivals inflows into spot Ethereum (ETH) exchange-traded funds (ETFs), which are seeing record demand. Several companies have recently unveiled Ethereum (ETH) treasury strategies that generate passive yield through Ethereum (ETH) staking, including BitMine Immersion Technologies and SharpLink Gaming.
Outperforming Bitcoin
The recent influx of both ETF and corporate demand has likely contributed to Ethereum (ETH)‘s outperformance against Bitcoin (BTC), with the Ethereum (ETH)/Bitcoin (BTC) ratio rising from 0.018 in April to 0.032 in July. This trend has outpaced the equivalent corporate uptake of Bitcoin (BTC) and may signal the beginning of a longer-term structural shift in institutional digital asset portfolios.
Decentralized Finance Opportunities
Unlike Bitcoin (BTC), Ethereum (ETH) treasury holdings offer returns from staking rewards, currently around 3%, and decentralized finance (DeFi) leverage opportunities, giving them a structural advantage over Bitcoin (BTC) treasuries.
Future Outlook
The growing institutional investment in Ethereum (ETH) could have significant implications for the broader market. As more corporations and investment banks enter the Ethereum (ETH) market, it may lead to increased demand and, subsequently, higher prices. Retail investors should pay close attention to these developments, as they may present new opportunities for investment and growth. With the bank maintaining its Ethereum (ETH) year-end price target of $4,000, the world’s second-largest cryptocurrency is likely to remain a key player in the digital asset market.
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