The Restructuring of the Ethereum Capital Landscape: Institutional Holdings and Price Rebound Trigger New Market Trends

Recently, the price of Ethereum (ETH) has continued to strengthen, and market confidence has clearly rebounded. This wave of rebound is largely due to the massive influx of institutional funds. As more institutional participants accelerate their entry, Ethereum may face significant changes in its capital structure.

Spot ETF and Reserve Narrative: A New Turning Point for Ethereum

In July 2024, the launch of the Ethereum spot ETF was seen as an important milestone connecting traditional finance, with the market widely expecting a significant boost for ETH. However, after the ETF went live, the market reacted tepidly, with ETH's price performance being weak and the ETH/BTC exchange rate continuing to decline, impacting investor confidence. At the same time, the disposal of some assets by the Ethereum Foundation also sparked controversy, as these actions, while possibly necessary for normal operations, were overly interpreted due to the market's sensitive sentiments.

Data shows that since the ETF launch, the cumulative net inflow of funds is approximately $5.76 billion, accounting for 3.87% of Ethereum's total market capitalization. In the past 13 months, there have only been three months with net outflows, totaling $930 million, indicating a steady trend of capital absorption.

However, the steady inflow of ETF funds has not effectively supported the price of ETH. From the launch of the ETF to the announcement of the first ETH reserve company establishing a strategic reserve, the maximum increase in the price of ETH was only 16.55%, while the maximum decrease reached as high as 63.34%. In contrast, after the launch of the Bitcoin spot ETF, the price of BTC surged by 153.3%, showcasing a stark contrast between the two.

In the past two months, the market sentiment has begun to shift. After a deep adjustment, ETH has experienced a technical rebound, coupled with the Ethereum Foundation initiating internal governance reforms, and publicly traded companies starting to include ETH on their balance sheets, injecting new narrative momentum into ETH.

Since several companies announced their allocation of Ether, the price of Ether has recorded a cumulative increase of 22.29%, significantly outperforming Bitcoin's performance of 7.9% during the same period. This round of rebound is not only based on asset revaluation but also benefits from the gradual formation of a new narrative around strategic reserve assets.

Currently, the market sentiment is bullish, and several investment professionals have publicly expressed optimism about the long-term value of Ethereum. Meanwhile, institutions are accelerating their entry, with Ethereum spot ETFs recording over $1 billion in net inflows for nearly two consecutive months.

Institutional Holdings Expand: Ethereum Faces Capital Restructuring

As traditional financial giants rush into the spot ETF arena and publicly listed companies initiate a Bitcoin reserve trend, the narrative and pricing power of Bitcoin have shifted from the crypto-native community to traditional capital. Now, this trend seems to be repeating itself with Ethereum.

According to the data, there are 54 entities that hold more than 100 ETH, collectively holding over 1.6 million ETH, worth over $5.07 billion, which accounts for 35% of the total scale of the ETH ETF. In the past two months, several listed companies have announced plans to incorporate ETH into their balance sheets.

From the current stage of institutional participation in Ethereum, it can be mainly divided into two camps. One camp is the early native forces of the Ethereum ecosystem banding together for self-rescue, while the other camp is Wall Street's approach that replicates Bitcoin's reserve logic.

If the holdings of these institutions continue to expand, the pricing power, voice, and even governance rights that were originally held by core researchers, the Ethereum Foundation, and early investors may face a reshuffle. However, many of these publicly traded companies that are allocating ETH are currently facing financial pressure, mainly aiming to hedge against inflation, boost stock prices, or seek short-term gains, and have not yet shown a willingness to be deeply tied to the construction of the Ethereum ecosystem.

Unlike the wave of Bitcoin reserves, Ethereum has yet to see a representative figure that embodies both faith attributes and traditional capital influence, which to some extent limits Ethereum's overall dissemination as an institutional asset in mainstream capital markets.

Ethereum's official stance is open towards institutional arrangements. The founder of Ethereum recently stated that institutions choose Ethereum because it is stable, secure, does not go down, and has a clear technological roadmap. He also emphasized the importance of dual governance mechanisms and decentralization.

Overall, as Ethereum sparks a wave of reserves, the market's attention and liquidity have undoubtedly increased significantly. However, if the price rise lacks support from actual ecological activity, it is difficult to sustain. The true core driving the stable growth of ETH's value remains the continuous innovation and enhancement of activity within the Ethereum ecosystem. Currently, the Ethereum Foundation is conducting in-depth reforms across multiple dimensions, aiming to reshape the ecological leadership, strengthen governance efficiency, and ultimately change the external perception of Ethereum.