Whereas many retail investors have been shook out by high uncertainty, Ethereum institutional demand is growing than its competitive currency, Bitcoin
Record high institutional demand
In recent years, several investors and developers have been drawn by Ethereum’s scalability problems. However, it seems that the London hard fork scheduled for July is very attractive.
Besides “ultra sound capital,” there appears also to be a growing institutional demand for Ethereum.
The open interest and daily volume have been steadily increasing since CME launched its Eother futures on February 8. Data from Skew shows that, on the world’s largest derivative trade, the total number of outstanding contracts stands at $357 million and the volume of trade increased to $680 million on April 22.
The increase in institutional demand is linked to the London Hard Fork and a new financial product based in Ethereum that was launched in Canada, according to Arcane Research.
“The growing open interest and trading volume matches 4 Canadian Ether ETFs last week, which included Purpose Investments, CI Global Asset Management, Evolve, and 3iQ, all of which have launched their ETFs,” the research firm said.
Buying Spree Ethereum Whales
The data showed that demand for Ethereum for large holders had been similarly increased. The distribution chart of Ether shows that over the last two weeks, the number of adresses with ETH from 10,000 to 1,000,000 has increased 5.22%.
Since then, approximately 57 whales have entered the network.
At first glance, the increasing number of large investors who support Etherum might seem minor. The sudden increase in buying orders is considerable, however, when these whales hold between $27 million and $2.7 billion in ETH.
The increased purchasing pressure behind Ethereum was large enough to push prices down to $2,740, which brought their link to Bitcoin down to 0,18 over many years.
As Ether continues to rise, as BTC collapses, more institutions are likely to turn towards this altcoin and help to increase prices.