ETH Absorbs Over $81 Billion in Capital Since November 2022

Recent analysis on ether (ETH) liquidity reveals key insights relevant for investment strategies:

Realized Capital Growth: ETH has absorbed over $81 billion in new capital inflows since November 2022, reaching a realized cap of $266 billion. This is a 43% increase, lower than bitcoin's 136%.
Institutional Demand: 80-90% of spot ETH ETF inflows are genuine institutional allocations. In contrast, only about 3% of bitcoin ETF inflows are arbitrage-based, indicating ETH's institutional allocation still lags behind BTC.
Derivatives Market Activity: As of July 21, combined open interest in ETH futures and options was $71 billion, with options OI being less than half that of perpetual futures. This suggests room for growth in institutional participation in ETH derivatives.
Market Sentiment Analysis: After ETH regained $3,800 in July, sell-side pressure indicated profit-taking. As the price fell towards $3,300, buy-side interest increased, suggesting a “buy-the-dip” sentiment.
Digital Asset Treasuries (DATs): DATs have acquired approximately 4.1 million ETH ($17.6 billion), accounting for 3.4% of circulating supply. Their long-term hold strategy provides stable demand.

In conclusion, while ETH's institutional engagement is evolving, there is substantial potential for growth in participation and capital inflows, especially as DATs become more prominent.