1. Why are institutions losing interest in Ethereum?
Institutions are pulling back due to inconsistent ETF inflows, high volatility, regulatory uncertainty, and growing competition from faster, cheaper blockchains.
2. How have Ether ETFs affected institutional demand?
Ether ETFs initially boosted inflows, but interest quickly faded as daily inflows became unstable, showing limited long-term commitment from institutions.
3. Does Ethereum’s volatility impact institutional investment decisions?
Yes. Sudden price drops and large liquidations make Ethereum appear risky, causing institutions to limit exposure and follow strict risk controls.
4. Are competing blockchains influencing Ethereum’s decline?
Absolutely. Networks with lower fees, quicker settlement, and higher staking yields are attracting institutional attention and reducing Ethereum’s market dominance.
5. Can Ethereum regain its institutional appeal?
Yes, but it will require more stable ETF flows, clearer regulation, lower operational friction, and continued technical improvements to restore confidence.