Institutional investments in Ether ETFs are demonstrating growing investor interest, reporting record inflow volumes. In the past 13 days, the total inflow exceeded $8.3 billion.
Inflows Records in Ether ETFs
On July 8, these funds recorded a net inflow of $533.87 million, increasing the total inflows since July 2 to over $8.32 billion. The BlackRock iShares Ethereum Trust contributed the most with $426.22 million, raising its assets under management to over $10 billion.
Surging Demand for ETH Against Shrinking Supply
Demand for ETH is projected to rise to an additional $20 billion over the next year, while Ethereum is expected to issue only around 0.8 million ETH during the same period. This suggests a potential demand that could exceed new supply by nearly seven times. 'In the short term, the price of everything is set by supply and demand. For now, there is significantly more demand for ETH than there is new supply,' commented Matt Hougan from Bitwise.
Comparison with Bitcoin ETFs
While Ether ETFs received significant inflows, Bitcoin ETFs experienced net outflows of $67.93 million. This indicates a temporary pause in the previously strong demand from institutional investors for Bitcoin ETFs.
Thus, there is a sharp increase in interest in investments in Ether ETFs, creating a positive outlook for Ethereum against the backdrop of reduced supply. Given the demand projections, it is likely that this trend will continue.
