Ethereum Enters a New Chapter of Capital: Price Rebound, Institutional Reserves Become a Turning Point

Recently, the price of Ethereum has been continuously rising, and the competition for reserves has become increasingly fierce, with market confidence clearly recovering. This rebound is largely attributed to the active participation of institutional funds. As more institutions accelerate their entry, Ethereum may face significant changes in its capital landscape.

Spot ETF and Listed Company Reserves Trigger New Turning Point

The launch of the Ethereum spot ETF was seen as an important milestone in entering the traditional financial sector, and the market generally expects it to boost the price of Ether and the ecosystem.

However, after the launch of the Ethereum spot ETF in July 2024, the market response was tepid, with ETH price performance weak and the ETH/BTC exchange rate continuing to decline, significantly impacting investor confidence. At the same time, some selling actions by the Ethereum Foundation sparked controversy. Although these actions may have been driven by operational needs, the sensitivity of market sentiment led to an overinterpretation of these actions, and the voices bearish on Ethereum are growing more numerous.

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

However, the steady inflow of ETF funds has failed to effectively support the price of Ether. From the launch of the ETF to the announcement of the first ETH reserve company establishing strategic reserves, the maximum increase in the price of Ether 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 as much as 153.3%, showing a much stronger performance.

In the past two months, the market sentiment has begun to change. ETH has experienced a deep adjustment followed by a technical rebound; the Ethereum Foundation has initiated internal governance reforms, and public companies are incorporating ETH into their balance sheets, injecting new momentum into ETH.

Since multiple companies have successively announced their allocation of Ether (ETH), the price of ETH has recorded a cumulative increase of 22.29%, significantly outperforming Bitcoin's 7.9% performance 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.

The current market shows strong bullish sentiment, with several industry insiders expressing optimism about the long-term value of Ethereum. At the same time, institutions are accelerating their entry, with Ethereum spot ETFs recording over $1 billion in net inflows for two consecutive months. It is expected that capital inflows may significantly accelerate in the second half of 2025.

Institutional holdings exceed 1.6 million ETH, the capital landscape of Ethereum may be reshaped.

As traditional financial giants enter the spot ETF arena and publicly listed companies spark a trend of Bitcoin reserves, the narrative and pricing power of Bitcoin have shifted from the crypto-native community to the hands of Wall Street capital.

This trend seems to be repeating itself with Ethereum, as an increasing number of listed companies begin to make large-scale investments in Ethereum. Data shows that there are 54 entities holding more than 100 ETH, collectively holding over 1.6 million ETH, valued at over $5.07 billion, which is equivalent to 35% of the total size of the ETH ETF. In the past two months, several listed companies have announced that they will include ETH in their balance sheets.

From the current stage of institutional composition entering 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 consists of new Wall Street forces replicating the Bitcoin reserve logic.

If the positions of these institutions continue to expand, the pricing power, discourse power, and even governance rights that were originally held by developers, core researchers, the Ethereum Foundation, and early investors may face a reshuffle. However, looking at the listed companies currently holding ETH, most are under financial pressure, 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.

Ethereum's official stance towards institutional arrangements is open. The founder stated that institutions choose Ethereum because it is stable, secure, does not crash, and has a clear technical roadmap. Senior officials from the foundation also pointed out that institutions favor ETH due to its long-term stable operation, continuous upgrades, and commitment to censorship resistance and security.

However, some also emphasize the importance of a dual governance mechanism and decentralization, pointing out that if decentralization remains merely a slogan, Ethereum will face a survival crisis.

Overall, as Ethereum sparks a reserve trend, market attention and liquidity have significantly increased. However, if the price rise lacks support from actual ecological activity, it will be difficult to sustain. The core that truly drives the stable growth of ETH's value remains the continuous innovation and enhancement of the Ethereum ecosystem. Currently, the Ethereum Foundation is undertaking deep reforms across multiple dimensions, striving to reshape ecological dominance, strengthen governance effectiveness, and reverse external negative evaluations of Ethereum.