Ethereum is seeing an unprecedented surge in institutional interest and capital inflows, driven by the dual momentum of spot exchange-traded fund adoption and the emergence of Ethereum-focused corporate treasuries.
Analysts and fund managers now suggest that the combined buying pressure could exceed $100 billion over the next 12 to 18 months, with the trend gaining pace amid rising Ether prices and a favorable regulatory and market environment.
Vance Spencer, co-founder of Framework Ventures, said on Tuesday that mid-eleven figures - between $50 billion and $100 billion - are set to be funneled into Ethereum over the coming year to year-and-a-half. “That’s immense buying pressure for an asset still valued under $400 billion,” Spencer noted, signaling a major macro shift in how Ether is being treated by funds and corporations alike.
The estimate combines ETF inflows, treasury acquisitions, and on-chain accumulation by emerging decentralized finance (DeFi) platforms. According to Spencer, the tide is turning from speculation to long-term accumulation, mirroring the 2020-2021 bull cycle but with stronger institutional underpinnings.
Ethereum ETFs Post Historic Inflow Run
One of the clearest signs of growing institutional demand is the explosive growth in spot Ethereum ETFs since their U.S. approval. Over the past 12 trading days, Ether ETFs have seen net positive inflows totaling more than $2.2 billion - including $300 million on Monday alone, led by Fidelity’s FETH, which attracted $127 million in a single session.
NovaDius Wealth Management president Nate Geraci noted that five of the ten largest ETF inflow days since launch have occurred in just the past two weeks, highlighting the acceleration in investor demand. Cumulative net inflows for all Ethereum ETFs now exceed $7.7 billion, with BlackRock leading the pack in net purchases.
However, the overall figure is slightly suppressed due to ongoing capital exits from Grayscale’s ETHE product, which continues to bleed due to its legacy fee structure and NAV discount, despite the broader inflow trend.
This ETF growth comes just weeks after regulatory approval of spot ETH ETFs in the U.S., which had long lagged behind Bitcoin in institutional exposure due to concerns over Ether’s legal classification. But with the SEC appearing to tacitly accept Ethereum’s commodity status, barriers to broader institutional adoption are falling away.
Rise of Ethereum Treasury Companies
Parallel to the ETF boom is a new phenomenon: Ethereum treasury companies - firms accumulating ETH as a primary asset on their balance sheets. On Monday, The Ether Reserve, a newly formed entity, announced plans to go public via a SPAC merger under the name “The Ether Machine.” Backed by over $1.6 billion in funding, the company is expected to acquire 400,000 ETH, currently worth approximately $1.5 billion.
This would make The Ether Machine the largest public Ethereum-holding company to date, eclipsing even the ETH holdings of large DeFi protocols and hedge funds. The listing is expected to proceed through Nasdaq, bringing Ether even further into the corporate finance mainstream.
Also on Monday, DeFi-native firm ETH Strategy unveiled a public sale for STRAT tokens, backed by ETH holdings. Following a private presale, the firm has already accumulated 6,900 ETH (over $25 million) as of July 11. ETH Strategy stated that the token sale aims to “kickstart the ETH-compounding flywheel,” adding to the ongoing momentum in Ethereum-centric financial products.
Other firms, including Bitmine Immersion Technologies and SharpLink Gaming, have quietly ramped up their ETH reserves in recent months, adding depth to the growing network of Ethereum corporate treasuries.
Macro Catalysts and Market Sentiment
This wave of institutional Ethereum exposure coincides with broader macroeconomic trends and crypto market dynamics. With Bitcoin seen by many as already nearing the end of its initial ETF-driven price discovery phase, Ethereum appears to be entering its own spotlight moment.
Moreover, expectations around Ethereum’s potential deflationary supply mechanics - driven by the EIP-1559 burn mechanism and Proof-of-Stake yield dynamics - are reinforcing its appeal as a long-term digital asset. Unlike Bitcoin, Ethereum offers native yield through staking, making it more attractive in a yield-starved global economy.
Technical analysts have also weighed in. Pseudonymous trader Merlijn The Trader pointed out on X that ETH is “replaying its 2020 script” with a breakout from a descending structure, a bear trap, and signs of an imminent parabolic move. He compared the current setup to Ethereum’s 1,800% rally in the previous cycle, hinting that the present accumulation phase could precede another exponential rise.
On Monday, ETH reached a seven-month high of $3,850, a 25% gain over the past week. Although the price cooled slightly to around $3,730 by Tuesday morning, the prevailing sentiment suggests ETH is setting up for a broader breakout.
Beyond ETFs: The Ethereum Use Case Expands
While ETFs and treasuries dominate the headlines, Ethereum’s broader ecosystem is also seeing signs of reacceleration. With Layer 2 networks like Arbitrum, Optimism, and Base continuing to draw capital and developer activity, Ethereum remains the dominant smart contract platform in terms of both total value locked (TVL) and developer ecosystem size.
Additionally, the resurgence of NFT activity, the reawakening of DeFi protocols like Lido and Aave, and renewed interest in real-world asset tokenization on Ethereum-based platforms are reinforcing ETH’s utility beyond pure speculation.
Recent policy developments may further amplify these trends. Analysts point to the U.S. GENIUS Act, which includes provisions that favor regulated stablecoin issuance and on-chain financial instruments, potentially setting the stage for Ethereum to play a critical infrastructure role in tokenized finance.
ETH’s Institutional Era Just Beginning?
While the $100 billion figure suggested by Spencer may sound ambitious, current trends suggest it’s within reach.
ETF demand is accelerating faster than early Bitcoin ETF forecasts predicted, and the emergence of Ethereum-focused treasury strategies signals growing confidence in ETH as a core treasury reserve asset rather than a speculative token.
As regulatory clarity improves and Ethereum’s core infrastructure matures - including the long-awaited Pectra upgrade scheduled for 2025 - ETH may finally be poised to fulfill its long-touted narrative as the financial layer of the internet.
Still, risks remain. Competition from alternative smart contract chains, ongoing U.S. regulatory uncertainty, and potential macro shocks could slow momentum. Yet for now, all signs point toward Ethereum entering its most consequential market phase since the DeFi summer of 2020 - and this time, the buyers are wearing suits.