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▲ Ethereum (ETH) ©Dasol Ko
Institutional buying for Ethereum (ETH) is heating up again. With approximately $690 million net inflow into US spot Ethereum ETFs in just one week, and large-scale corporate accumulation, futures open interest and leverage have actually decreased. This suggests that the recent uptrend is based on spot demand rather than speculative betting.
According to investment media FXStreet on September 29 (local time), US spot Ethereum ETFs recorded a net inflow of approximately $690 million last week, sharply reversing the outflow trend seen in early September. Specifically, $270 million flowed in on September 21, followed by another $162 million on the 22nd, with net inflows continuing until the end of the week. This is significant as institutional demand continued over several trading days rather than being a one-time concentrated purchase.
Corporate accumulation of Ethereum is also supporting spot demand. BitMine Immersion Technologies announced last week that its holdings reached 5.98 million ETH. This accounts for approximately 4.9% of the total Ethereum supply. The company purchased over 27,000 additional ETH during the week, moving closer to its goal of securing 5% of the total supply.
A notable aspect of this uptrend is the decreasing reliance on leverage. With futures Open Interest decreasing and leverage shrinking, direct purchases by ETFs and corporations are supporting the price increase. If this trend continues, it could differentiate itself from a rise driven by speculative positions using borrowed funds. Lower leverage can also partially reduce the risk of amplified price drops due to large-scale forced liquidations during sudden price movements.
However, whether institutional demand will be sustained remains a variable. The virtual asset market reacts sensitively to risk asset investment sentiment, the Federal Reserve's (Fed) monetary policy outlook, and changes in institutional fund flows. In fact, the US spot Ethereum ETF recorded a net outflow of over $220 million on the 16th alone, before returning to net inflows later in the month. This means that despite the recent $690 million inflow, there is still a possibility that the trend could reverse in the short term.
Alongside institutional demand, the market is also focusing on Ethereum's next major upgrade, Glamsterdam. Glamsterdam, currently undergoing testing, is expected to be applied to the mainnet in the fourth quarter, but the exact schedule has not yet been confirmed. The next major step is the Sepolia testnet fork scheduled for October 6. This upgrade aims to improve transaction processing and data management in response to increased network activity, making its development progress, along with institutional demand, a key variable influencing future Ethereum investment sentiment.
*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*
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