Ethereum is experiencing a seismic rally. The price of Ether, the native token of the Ethereum network, surged by nearly $1,000 in a single week to hit a five-month high, climbing 25.3% to reach $3,745.72, according to data firm CoinGecko. For the first time in recent memory, there’s a palpable sense that this rally is grounded in something real and sustainable.
So, what’s driving this explosive momentum?
1. Big Money Pours In Through New Ethereum ETFs
Major asset managers have begun launching Ethereum ETFs (Exchange-Traded Funds). These regulated financial products allow investors to gain exposure to Ethereum’s price without the technical hurdles of buying and storing the cryptocurrency themselves. Think of it as buying a share of gold through the stock market instead of purchasing a physical bar.
According to market analysts, a staggering $730 million has flooded into these funds in just the past few weeks, shattering inflow records. This is a significant wave of capital from institutional players, and it’s fundamentally driving prices higher.
Many investors believe this is merely the opening act. The crypto world is buzzing with the funds flooding into spot Ethereum ETFs, from pension funds, retirement accounts, and conservative wealth managers who have been waiting on the sidelines. Spot Ethereum ETFs enable investors to have regulated exposure to Ether.
2. Public Companies Add Ethereum to Their Balance Sheets
This is where the story gets truly compelling. For years, Bitcoin was the only cryptocurrency reputable enough for a public company to hold as a treasury asset. Now, Ethereum is breaking that monopoly in a dramatic fashion.
SharpLink Gaming, a Minnesota-based company, pivoted its entire business model from online gambling marketing to building an Ethereum treasury. After adding 144,501 ETH in the past few days, it now holds at least 353,000 ETH worth $1.3 billion, according to EmberCN.
BitMine Immersion Technologies raised $250 million in June with the explicit goal of acquiring Ether. This move attracted serious attention, with Peter Thiel’s Founders Fund recently purchasing a 9.1% stake in the firm, causing its stock to soar. As of July 17, the company said that it holds 300,657 ETH worth $1.04 billion at current prices.
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