Ethereum has continued its recent surge, breaking through $4,500. This is the first time since December 2021, nearly 3 years and 8 months ago, approaching close to its historical peak of $4,721 in November 2021.
According to the US cryptocurrency exchange Coinbase, Ethereum's price recorded $4,501 as of 8:00 PM local time on August 12th, rising 4.39% in a day. At the same time, Bitcoin saw only a slight increase, making Ethereum's rise more prominent. This movement is interpreted as a result of Ethereum's unique market expectations and significant capital inflows from financial institutions.
Particularly noteworthy is the capital inflow into the US spot Ethereum ETF. On August 11th alone, $1 billion was invested, marking the largest amount since the product's launch, which exceeds the amount invested in Bitcoin-related ETFs during the same period. This suggests that institutional investors are moving funds seeing structural growth potential beyond simple short-term price increases.
Behind this interest is Ethereum's unique position in the digital asset ecosystem. In asset tokenization, decentralized finance (DeFi) platforms, and smart contract-based technologies, Ethereum is already playing a central role and is attracting attention as foundational technology that could replace or integrate traditional financial infrastructure. In the coin market, Ethereum is being called the 'blockchain of Wall Street', differentiating itself from Bitcoin.
Institutional demand is also visibly expanding. 'Bitmain Emerging Technologies (BMNR)', one of the world's largest Ethereum holders, announced a fund-raising plan of up to $20 billion for additional purchases beyond existing holdings, fueling market expectations. Market experts view Ethereum's price increase not as a simple technical rebound, but as a signal of structural change.
This trend is expected to gain momentum depending on the Federal Reserve's future interest rate policies, global digital asset regulations, and the spread of ETF products. Especially if institutional investors continue to expand Ethereum-centered investments, it could be a key to changing the overall cryptocurrency market landscape.
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