The passage of the Genius Act, BlackRock's application for an ETH staking ETF (ETHA), and Trump's signing of an executive order to include Crypto in 401K plans have all brought about a wave of positive news, yet we are seeing a short-term pullback.
Yesterday was arguably the highest market sentiment for $ETH in recent months 😂
It also brought a slight pullback, dropping to around 3475, which is actually less than a 5% decline.
The spot market isn't too concerning (although everyone tends to fear this statement).
But I think if there is a pullback later, most of those getting liquidated will be the crypto stock players, which is something to pay special attention to ⚠️.
This week, the inflow of ETH into ETFs was 672,000 ETH (2.2 billion USD).
The newly added ETH on the Ethereum network was 11,572 ETH (41 million USD).
Additionally, there are currently two institutions that have successfully switched positions.
The first is Bitmine, led by Tom Lee, which currently holds 300.7K $ETH, valued at 1.1 billion USD, with a 30-day increase of 84%.
The second is Sharplink Gaming, chaired by Joseph Lubin @ethereumJoseph, which currently holds 280.6K $ETH, valued at 1 billion USD, with a 30-day increase of 59%.
Currently, the Ethereum Foundation ranks third, with holdings of around 880 million USD.
The seventh place, with the highest increase, is Bit Digital, which currently holds 100.6K $ETH, valued at 36.7 million USD, with a 30-day increase of 264%.
In eleventh place, also a common ETH reserve company, BTCS Inc. holds 31.9K $ETH, valued at 13.6 million USD, with a 30-day increase of 135%.
Several institutions that are increasing their holdings at a faster pace include DeFi protocols that are worth paying attention to.
In the past seven days, net inflows into ETH ETFs exceeded $2 billion. This kind of rush has never been seen before.
Wall Street institutions/new agencies are scrambling for ETH for two reasons:
First, BTC is not cheap right now, and becoming another MicroStrategy is not very cost-effective. Of course, this is a secondary reason.
Second, and more importantly, institutions see Ethereum as a new paradigm that is different from Bitcoin. BTC is digital gold, and its leading position is unshakeable. Creating another digital gold is not very meaningful. Ethereum represents a new paradigm; it can support new finance, including stablecoins, asset tokenization, future new payments, and the expansion of dollar hegemony, which leads to on-chain transactions, including lending, trading, derivatives, and more.
Not only are assets like the dollar, U.S. Treasuries, and U.S. stocks being tokenized on-chain, but in the future, once the ecosystem matures, physical gold, collectibles, real estate, and more can also be tokenized, and even BTC is being tokenized on Ethereum (over $20 billion has already been tokenized). Institutions need a new financial infrastructure that can support tens of trillions/hundreds of trillions of dollars. If you were an institution, how would you choose? Ethereum naturally becomes the target for institutions betting on the future of new finance. This also explains why some institutions are now scrambling for ETH.
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