Ethereum is riding that wave as institutional investors continue to build their exposure with the introduction of Ethereum ETFs, driving prices close to the $3,000 level. Spot Ethereum ETFs saw their biggest single day inflows on July 10, taking in $386 million. As public companies continue to add Ethereum to their balance sheets and staking approval is expected, analysts are already forecasting a coming supply squeeze.

Perhaps as a result, more than 80% of Ethereum were in the money, with Ethereum hovering not far below the $3,000 threshold. The increase in Ethereum as well as the rise overall ETH prices sent cumulative total net inflows over $5.31 billion. This soaring profitability Ethereum holders are experiencing, along with rising institutional adoption, sends a strong bullish signal for Ethereum to continue climbing.

ETF Inflows and Market Sentiment

The current wave of ETF inflows indicates a deepening confidence in Ethereum’s long-term trajectory. There’s one other thing driving this positive sentiment: hopeful anticipation around the timing of staking approval. We are anticipating staking approval for Ethereum to come before October.

If for staking approval does go through, ETH ETFs would become the first yield-bearing crypto funds in U.S. history. Perhaps even more significantly, this development will draw evermore institutional investors in search of yield-generating opportunities that can be found within the crypto space.

"The ETH ETF is not even priced in yet." - Eric Jackson, founder of EMJ Capital

Jackson even predicted a base case target of $10,000 for Ethereum this cycle. The last quote emphasizes the point that Ethereum is being undervalued at its current price.

Staking and Supply Dynamics

On top of that, a little over 30% of the entire Ethereum supply is currently staked, which has withdrawn an even larger amount of supply from exchanges. More than 35 million ETH, or about 30% of the circulating supply, is currently staked. Current yields for staked Ethereum are between 2.9% APY and up to 3.4% APY on yield aggregator platforms.

At today’s prices, more than 124 million Ethereum are in the green of 155 million circulating Ethereum. The combined picture lowers the motivation to sell. This unprecedented combination of reduced supply and increased holding behavior should lead to a substantial price appreciation.

"There is an ETH supply shock brewing that is going to catch absolutely everyone off-guard - I'm talking a god candle that you're going to be telling your grandkids about" - Anthony Sassano

Sassano’s quote is a welcome reminder of the potential for a dramatic price spike in response to the expected supply shock.

Institutional Accumulation and Future Outlook

With public companies continuing to plan for adding ETH to their balance sheets, this is a signal of a long-term commitment to Ethereum. This trend, in combination with the expected SEC approval of ETH staking for ETH ETFs, creates a very bullish picture for Ethereum’s long-term future.

Beyond the breakout, institutional interest in Ethereum has never been higher. The supply of Ethereum available is becoming increasingly scarce, setting the stage for substantial price appreciation. The combination of all these factors seems to point toward a very positive outlook for Ethereum over the next few months.