Investors Go Bullish on Ethereum with $296 Million in Inflows, Analysts Highlight Institutional Adoption

Ethereum is enjoying a notable resurgence in investor sentiment, as digital asset investment products centered around the second-largest cryptocurrency by market cap posted $296.4 million in inflows last week. This marked Ethereum’s seventh consecutive week of inflows, bringing the total to $1.5 billion.Trade Crypto on KrakenAccording to a report from CoinShares’ head of research James Butterfill, this streak represents the strongest wave of Ethereum inflows since the U.S. election in November 2020, signaling a clear revival of institutional confidence. Digital Asset Inflows Slow Amid Policy Uncertainty, Ethereum leadshttps://t.co/FQFtksqwb6 pic.twitter.com/PJcjVRM5T5This bullish trend comes at a time when Bitcoin investment products are showing signs of fatigue. Bitcoin funds recorded a second consecutive week of outflows, totaling $56.5 million. Even short-Bitcoin products saw $4.1 million in outflows, highlighting broader market uncertainty as investors await clearer signals from the Federal Reserve on monetary policy.Investment research firm Bernstein echoed the growing institutional enthusiasm in a recent report, emphasizing Ethereum’s foundational role in blockchain-driven financial innovation. Unlike Bitcoin, often heralded as “digital gold,” Ethereum functions as a decentralized computer, a platform supporting a range of real-world applications such as stablecoins and tokenization.“Ethereum deserves love,” Bernstein analysts led by Gautam Chhugani wrote, noting that the blockchain commands the dominant market share in key sectors like stablecoins. With companies like Visa, Mastercard, and Stripe developing stablecoin strategies, transaction fees paid to Ethereum for processing such payments reinforce the asset’s underlying value.Bernstein pointed out that Ether ETF inflows reached $815 million over the past 20 days, with net year-to-date inflows turning positive at $658 million. This upswing, the analysts argue, reflects a “critical inflection point” in the narrative around the value accrual of public blockchain networks, suggesting that the line once drawn between “crypto” and “blockchain” is beginning to blur in institutional circles.The surge in Ethereum-focused inflows coincides with a broader shift in how investors perceive crypto assets. While the last crypto market cycle was fully dominated by Bitcoin and its appeal as a store of value, current trends are also showing favor towards Ethereum’s infrastructure-level utility.Bernstein notes that key players like Coinbase and Robinhood are advancing beyond mere trading to build financial applications on Ethereum rails, including stablecoin payment systems and tokenized real-world assets. Meanwhile, Kraken is reportedly preparing to offer tokenized U.S. stocks to international users, further embedding Ethereum in the future of fintech.This suggests that Ethereum may no longer be viewed merely as a speculative asset but as a cornerstone of next-generation financial infrastructure.Currently, the Ethereum price prediction algorithm on CoinCodex is very bullish on Ethereum, forecasting the ETH price to reach as high as $4,800 in 2025. This would represent an 86% increase compared to the asset’s current price. While this peak is expected to be followed by a strong pullback, the algorithm is forecasting that ETH will eventually stabilize at around $3,000, where it will start consolidating for the next market cycle.Get Started on eToroeToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk. Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong.