Hassan Maishera
TL;DR
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ETH hit the $3,400 mark on Wednesday after rallying by more than 7% in the last 24 hours.
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Spot Ethereum ETFs posted a record of $726 million in daily inflow.
Institutional Demand Pushes ETH Higher
Ether, the native coin of the Ethereum blockchain, is one of the best performers among the top 10 cryptocurrencies by market cap. The coin is up by more than 8% in the last 24 hours to hit a high of $3,423.
However, it has slightly retraced and now trades around $3,368 per coin. The rally comes thanks to growing institutional demand for Ethereum-based products. Data obtained from SoSoValue revealed that nine spot Ethereum exchange-traded funds (ETFs) saw their most significant daily net inflow on Wednesday, totaling $726.74 million.
The inflows were led by $499 million into BlackRock's ETHA, with eight out of nine ether funds reporting positive flows for the day.
July has been a productive month for spot Ethereum ETFs, with $2.27 billion inflow recorded so far. This is the highest monthly inflow for Ethereum ETFs since the funds were launched in July 2024.
In addition to spot Ethereum ETFs, corporate entities are also buying more Ether. SharpLink recently became the leading corporate Ether holder with 280,706 ETH as of July 15, surpassing the Ethereum Foundation's holdings.
Analysts believe that Ether’s price could soar higher in the near term. While speaking with The Block, LVRG Research Director Nick Ruck said,
"With the increase in demand for ETH, traders view the digital asset as underpriced, while its tokenomics and ecosystem show strong fundamentals and limited supply growth in the future. We're optimistic that ETH can continue to rise as investors look for the cryptocurrency to reach past its previous all-time high at around $4,600."
