Key Points
- Institutional ownership of Ethereum ETFs surged from 4.5% to 14.5% in Q4 of 2024.
- Grayscale has submitted an application to the SEC for an ETF staking feature for its U.S Spot ETF product.
The fourth quarter of 2024 saw a significant increase in institutional adoption of Ethereum ETFs.
This is in contrast to the bearish sentiment among retail investors during the same period.
Institutional Adoption Uptick
Juan Leon, a senior investment strategist at Bitwise, reported that institutional ownership of Ethereum ETFs rose by about 10%, from 4.8% to 14.5%.
This trend indicates that institutions are increasingly investing in Ethereum.
Furthermore, the adoption rate of Ethereum ETFs was higher than that of Bitcoin ETFs over the same period.
Despite Bitcoin’s overall market dominance, institutional adoption for Bitcoin ETFs stood at 21.5% in Q4 2024, a slight decrease from 22.3% in Q3.
ETF Staking Feature
Another positive development for these products is the potential introduction of ETF staking.
The SEC Crypto Task Force recently held discussions with Jito Labs and crypto VC MultiCoin Capital on this matter.
Grayscale has even submitted an application to the SEC for an ETF staking feature for its U.S Spot ETF product.
Nate Geraci of the ETF Store expressed optimism about this development, stating that ETF staking is simply a “matter of time”.
Despite the surge in institutional adoption, Ethereum’s price has remained relatively stable.
At the time of writing, the altcoin was valued at $2.7k, down 34% from its December high of $4.1k.
