CoinMetrics disclosed in its recent State of the Network (SOTN) report that institutional interest in Ethereum has a strong positive correlation with the price of ETH, as measured from the SEC’s public database. The reason for the relationship was cited as the obligation of public agencies to report investments in cryptocurrency trusts and ETFs to the SEC.
By digging through the SEC’s database and examining 13(f) securities filings, CoinMetrics found that entities mentioning Ethereum in the filings have been on the rise from 2020 to 2022. The report notes that a similar trend is evident for Ethereum from 2020 to 2021, reflecting its growing interest in institutions.
CoinMetrics also said that if an ethereum ETF is approved, institutional interest may increase, as it has been for bitcoin. Similarly, an analysis of inflows into Ethereum funds shows a similar trend. Institutional investments in ethereum funds have seen two weeks of outflows, with around $17 million in outflows last week, according to CoinShares.