Institutional investors show greater confidence in Ether than retail investors just a week before the potential launch of the first spot Ether exchange-traded funds (ETFs). According to Eugene Cheung, head of institutions at Bybit, institutions have significantly increased their exposure to Ether. Cheung stated, “Our recent report shows that institutional investors are bullish on ETH, more so than retail investors.”
Growing Institutional Exposure
The report referenced by Cheung highlighted that institutional investors have doubled their Ether exposure from 6.54% to 14.29% following the ETF announcement. During the same period, retail investor allocation rose from 7.4% to 9.52%, indicating a more cautious optimism towards Ether. Institutional investors, with their substantial capital, can significantly influence an asset’s price appreciation, making their interest a bullish sign for Ether.
Institutional Investor Allocation to ETH. Source: Bybit
Potential Price Doubling in 2025
Cheung predicts that Ether’s price could double during the current bull cycle, potentially trading over the $6,800 mark by the end of 2025. He stated,
“The anticipation of ETF approval has driven interest in assets within the broader Ethereum ecosystem. I am optimistic about ETH’s long-term price, expecting it to double in the next 18 months, giving potential investors an excellent risk/reward ratio.”
Currently, Ether is up 11.3% on the weekly chart, trading at $3,420. However, it would need an additional $412 billion in investment to double its current market capitalization and reach the $6,800 mark. Ether remains 30% below its all-time high of over $4,800, achieved in November 2021.
ETH/USDT, 3-month chart. Source: TradingView
Long-term Outlook for Ether
Despite the positive sentiment, Ether ETFs are expected to attract fewer inflows compared to Bitcoin ETFs, according to Eric Balchunas, senior ETF analyst at Bloomberg. Cheung echoed this view, suggesting that Ether might initially capture around 30% of Bitcoin ETF inflows. He noted, “Ether is less understood than BTC and is a younger asset, so it’s largely unknown how flows will stack up.”
BTCÐ, 1-year chart. Source: TradingView
In the long term, however, the Ether ETF launch could provide more regulatory certainty around Ether, potentially allowing it to outperform Bitcoin. Cheung explained,
“As people become more educated and the regulatory situation improves, I expect Ether to one day outperform BTC due to its rich and varied use cases, especially if the ETFs can incorporate Ether’s native yield.”
Over the past year, Bitcoin’s price has increased by over 111%, while Ether’s price has risen by over 77%, according to Binance data.
