Buying pressure on Ethereum over the next year is mounting up as more corporate treasury firms emerge and institutional funds continue to hoover up the asset.
The pace of Ethereum inflows to spot exchange-traded funds is picking up momentum while new treasury companies stashing the asset are announced almost daily.
This will put immense buying pressure on Ethereum over the next 12 to 18 months, said Framework Ventures co-founder Vance Spencer on Tuesday.
“Mid-eleven figures have been added as buy pressure over a medium-term horizon (12-18 months) for ETH,” he said, adding that this could be $50 billion to $100 billion of inflows for a $400 billion asset.
Spot Ethereum ETFs in the United States have seen a 12-day inflow streak with more than $2.2 billion entering the products over the past five trading days.
Almost $300 million in inflows was recorded on Monday with Fidelity’s FETH fund leading the pack with a $127 million inflow.
Over $3.5 billion in new capital has entered the products, and five of the top ten inflows since inception have come in past two weeks, observed NovaDius Wealth Management President Nate Geraci.
The total inflow for Ether ETFs is now $7.7 billion with BlackRock’s inflow topping $8 billion. The total aggregate figure is lower due to the continued outflow from the higher-priced Grayscale ETHE fund.
In addition to the surge in ETF inflows is a new wave of Ethereum treasury companies which are emerging almost on a daily basis.
On Monday, a new investment firm focused on Ethereum announced plans to go public on the Nasdaq with over $1.6 billion in backing. The Ether Reserve will launch through a SPAC merger with a combined entity called “The Ether Machine,” reported Reuters.
The company will acquire around 400,000 ETH, currently worth around $1.5 billion, making it the largest public Ethereum treasury company.
Also on Monday, DeFi platform ETH Strategy announced a public sale of Ether-backed STRAT tokens. “ETH Strategy first needs deep onchain liquidity to kickstart our ETH-compounding flywheel, a foundation secured by the private presale,” the firm stated. The move follows its acquisition of 6,900 ETH on July 11.
Meanwhile, Bitmine Immersion Tech and SharpLink Gaming have continued to increase their holdings.
Ether prices tapped a seven-month high of $3,850 on Monday, building on a 25% gain over the past week.
The asset has cooled slightly at the time of writing on Tuesday morning when it was trading at $3,730.
ETH is “replaying its 2020 script,” with a descending breakout, final bear trap, and “explosion loading,” commented analyst ‘Merlijn The Trader’ who added that the last time it did this led to a 1,800% rally.
A similar rally from current levels could propel ETH prices into the stratosphere.
