Institutional investors have stepped up their purchases of cryptocurrency Ethereum (ETH) following regulatory approval of spot Ether exchange-traded funds (ETFs).
A report from asset manager CoinShares shows that institutional investors have been buying Ethereum at the fastest pace since March of this year after the U.S. Securities and Exchange Commission (SEC) cleared the way for spot Ethereum ETFs to begin trading in America.
In all, cryptocurrency investment products saw inflows of nearly $2 billion U.S. in the past week, extending the amount of inflows to more than $4 billion U.S. over the last month.
Trading volumes in exchange-traded products (ETPs) rose 55% in the last five trading sessions as investors again turn their attention to crypto.
Buying activity has accelerated since mid-May after a steep decline in April following a Bitcoin (BTC) halving event that saw the available supply of that crypto cut in half.
Analysts say the increased buying of Ethereum is likely due to the SEC decision to allow spot Ether ETFs, with the first ones expected to begin trading by the end of June.
Eight asset managers and investment firms have filed to launch Ethereum ETFs, including VanEck, Fidelity, ARK Invest, and BlackRock (BLK).
Some analysts are now forecasting that Ethereum’s price could reach $10,000 U.S. within the next 12 months.
Currently Ethereum is trading at $3,680 U.S., up 56% year to date.
