According to market data, institutional investors have made large-scale investments in the cryptocurrency market for nine consecutive weeks, with a particular focus on Ethereum, where weekly capital inflows reached as high as 583 million USD, setting a new historical record. This figure even surpasses the total of Bitcoin and all other crypto assets during the same period.

The phenomenon of this wave of capital continuously flowing in is worth pondering, especially during periods of market volatility, where institutional capital remains steadily entering. Analysts point out that this indicates that large capital institutions may have regarded the current price level as a strategic buying point, also known as the "golden pit" position.

The main catalyst for the massive influx of funds into Ethereum seems to be the expectation of the approval of spot ETFs. The U.S. Securities and Exchange Commission ( SEC ) is reviewing applications for Ethereum spot ETFs submitted by multiple institutions, including VanEck and ARK, with the market anticipating that these applications may receive results within the next two months. If approved, it will open the door for traditional financial capital to enter the Ethereum market, potentially having a huge impact.

On the technical level, the recent Cancun upgrade of Ethereum has also become an important factor supporting its value. This upgrade significantly reduced the transaction costs of second-layer solutions ( such as Arbitrum and Optimism), greatly enhancing user experience. This technological improvement is expected to activate ecosystem applications such as DeFi, NFTs, and blockchain games, adding substantial value to the Ethereum network.

From a valuation perspective, many institutional investors believe that Ethereum still has significant growth potential compared to its historical highs, especially considering the development prospects of its application ecosystem and factors such as staking yields.

The impact of this trend on the market may be multifaceted. Firstly, large-scale purchases of Ethereum by institutions will create strong buying pressure, driving prices up. Secondly, the rise of Ethereum may lead to corresponding projects, especially high-quality projects within the second-layer networks and ecosystems, rising together. Finally, the enhanced confidence of institutions may ignite enthusiasm among retail investors, further boosting positive market sentiment.

In the long run, the continuous inflow of institutional funds is expected to increase market depth, gradually reduce extreme volatility, and bring a more mature investment environment to the encryption asset market.