Ethereum sees yearly high in institutional activity following ETF launch

Image: IntoTheBlock

The broader crypto and stock markets have seen a turbulent end to July, erasing monthly gains. ETH has underperformed, attributed to changing macro sentiment and profit-taking following the ETF launch. Major stock indices have fallen nearly 10% from recent highs, potentially impacting crypto markets.

Political developments have also influenced market sentiment, highlighted the analysts at IntoTheBlock. Trumps odds of winning the presidency, which had climbed to 70% following a debate and shooting incident, dropped to 62% after Biden endorsed Kamala Harris, according to Polymarket.

Notably, ETH‘s market capitalization has declined from over 50% of Bitcoin’s in September 2022 to 32% currently. While some hoped the ETH ETFs would bring Wall Street adoption, initial outflows dont reflect this trend.

Image: IntoTheBlock

However, it may be premature to label the ETH ETFs a disappointment, as Bitcoin ETFs also experienced initial outflows before seeing significant inflows weeks later.

The changing political and economic landscape appears to be weighing on Ethers price, despite the long-awaited ETH ETF launch.