is gaining more attention from large investors. Over the past six weeks, Ethereum-related investment products received more than $1.1 billion in new funds. In the most recent week, inflows reached around $321 million, making it the best week for Ethereum in terms of investment since late 2024.
Several reasons explain this trend:
ETF Expectations: Investors are expecting that U.S. regulators will soon approve Ethereum-based spot Exchange-Traded Funds (ETFs). These funds allow traditional investors to invest in Ethereum easily through stock exchanges. Anticipation of this approval has encouraged institutions to increase their holdings.
Price Recovery: Ethereum’s price rebounded from a low of around $1,400 in April to levels near $2,600–$2,800 in May. This recovery signaled strength and encouraged new investments.
Technology Upgrades: Ethereum has made major upgrades in the past year, including the switch to Proof of Stake and upcoming improvements such as sharding and layer-2 scaling. These changes are making the Ethereum network faster, cheaper, and more energy-efficient.
Long-Term Utility: Unlike Bitcoin, which is mainly used as a store of value or “digital gold,” Ethereum is the foundation for smart contracts, decentralized finance (DeFi), and non-fungible tokens (NFTs). Its use cases continue to expand.
Also Read: Bitcoin, Ethereum, or XRP: Which is the Most Valuable Cryptocurrency to Invest in?
