Ethereum Attracts Institutional Capital After BlackRock ETF Bid
In 2023, Ethereum faced challenges as the SEC sought to classify it as a security. Concerned about potential issues, platforms like Kraken opted out of offering staking services in advance.
Due to this risk, Ethereum’s value dropped 25% against Bitcoin in a year.
In terms of institutional capital, it lagged behind Solana, XRP, Cardano and Litecoin, experiencing an annual outflow of $125 million.
Data for 27.10.23
Furthermore, the staking boom faded as the 4% yield couldn’t offset low growth compared to other crypto. Consequently, by October, the validator’s queue had significantly decreased, reducing the waiting time from forty to less than a day.
However, on November 9, BlackRock, the world’s largest asset management company, applied for a spot Ethereum ETF via Nasdaq.
On the same day, Ethereum’s price increased 8% to $2050.
On November 10, James Butterfill, Head of Research at CoinShares, stated that institutional capital outflows from Ethereum have been replaced by inflows in the past week.
Institutional interest in Ethereum could boost the altcoin’s recovery soon.
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