Institutional Investor Data Challenges The Gloomy Narrative Surrounding Ethereum

Ethereum narrative is negative but why are institutional investors going long

With all the negativity about Ethereum’s future and whether it will launch ETH 2.0 or not, you would think it would be putting investors off.

The Ethereum price has been pretty woeful if you compare it to Bitcoin’s, but with the immature speculators jumping back and forth, the more savvy investors appear to be doing quite the opposite.

Ethereum Narrative is Set for Doom and Gloom

Ethereum’s continued weakness has certainly been the catalyst for some investors to long it, which hints at a more rosey future for the second biggest cryptocurrency.

At the time of writing, Ethereum is trading at $203.65, down about 3% in the 24hr and 1 week chart, and has still only recouped about half its losses since the crash caused by the coronavirus scare.

And with Bitcoin struggling to reach $10,000 it seems like the bulls have given up for a bit, which could lead to a bigger correction for Ethereum and the altcoins.

Is the ETH narrative wrong again?

Data Challenges The Gloomy Narrative Surrounding Ethereum

This weakness in the Ethereum price hasn’t been enough to dissuade savvy investors from gaining exposure to Ethereum, however.

According to Glassnode, the number of wallet addresses holding over 100 ETH has grown massively in recent times, recording an all time high of 47,722.00 on 21 May 2020.

In addition to that, data from Grayscale Investments is interpreting a similar trend amongst institutional investors.

Since launching its Ethereum Trust has seen its AUM grown from $11.7m to $276.5m – a staggering 23.6x over the past year.

And the thing with the Grayscale Invest Ethereum Trust is that redemption isn’t possible for the product and so the only path appears to be upwards.

Is It Surprising Savvy Investors Are Longing Ethereum?

With so much negativity surrounding Ethereum, it’s rather surprising that institutional and savvy retail investors are bullish on Ethereum. Or is it?

Ethereum’s testnet migration to 2.0 is now expected to take place in Q3 of this year, and this will help Ethereum transition towards Proof of Stake consensus.

Long Ethereum

But with delay after delay many in the space have gotten restless and given up hope, especially when the narrative surrounding Etheruem is meant to drive the price and hope down.

But isn’t it a case of the narrative being wrong again? Of course the delayed launch of ETH 2.0 is a concern, and those impatient speculators are driven away by any negative narrative they read.

And this in turn helps the savvy investors pick up ETH at a discount for a continued length of time.


Etheruem has performed badly since the yearly highs in February. Sure, it’s gained a fair bit of its losses after the he crash, but if we compare its performance to Bitcoin’s then it appears that investors are losing hope.

But with a recent all time high of large ETH addresses of a minimum 100 ETH, and the growth of Grayscale’s Ethereum Trust, it appears the narrative might be wrong again.

Author: Tommy Limpitlaw

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When I came up with Ethereum, my first first thought was, 'Okay, this thing is too good to be true.' As it turned out, the core Ethereum idea was good - fundamentally, completely sound