news 
**BitMine Stacks 1.5M ETH: Why Institutions Want Ethereum Over Bitcoin**
In a shocking turn of events, institutional investor BitMine has revealed that it is now holding a staggering 1.5 million Ether (ETH), valued at approximately $7.19 billion. This massive bet on the second-largest cryptocurrency by market capitalization raises eyebrows as to why institutions are suddenly favoring Ethereum over its more prominent counterpart, Bitcoin (BTC).
According to sources close to the matter, BitMine’s aggressive strategy includes a recent $45 million purchase of 9,500 ETH at an average price of $4,735 per token. Although this latest buy-in has not yet yielded significant gains, previous acquisitions averaging $3,492 have already generated nearly $1.9 billion in unrealized profit.
**Ethereum’s Sudden Surge**
This sudden influx of institutional investment into Ethereum comes as the cryptocurrency climbs above $4,770, buoyed by record network activity and growing demand from traders and investors alike. Data from CoinMarketCap shows that Ethereum has surged an astonishing 31% over the past month, with many market watchers eyeing a potential breakout towards the $5,500 mark.
The network’s ability to handle immense transaction volumes at historically low costs has strengthened investor confidence in its long-term value proposition. Furthermore, Ethereum’s scalability upgrades have successfully reduced gas prices, rendering it an increasingly attractive option for institutions seeking exposure to this burgeoning space.
**Bitcoin Whales Join the Party**
Moreover, a major Bitcoin whale has also made headlines by selling 4,000 BTC ($460 million) and using the funds to acquire a substantial portion of ETH. The trader’s holdings include 135,265 ETH in long contracts valued at $581 million, with a profit margin of approximately $58 million.
This notable shift towards Ethereum accumulation is further solidified by the massive inflows recorded into Ethereum ETFs, totalling $337.7 million on August 23rd, as reported by Farside Investors.
**Uncharted Territory**
While short-term challenges may persist, BitMine’s enormous bet on Ethereum signifies a paradigm shift in investor sentiment. The fact that institutions are willing to risk significant capital on ETH over BTC underscores the growing appetite for this cryptocurrency among institutional investors.
As we navigate these uncharted waters, one thing is clear: Ethereum’s recent price surge and record network activity have created a perfect storm of demand. Whether you’re an individual trader or an institutional investor, it’s crucial to stay abreast of market trends and regulatory changes to optimize your portfolio for the most promising opportunities.
Source: ambcrypto.com
