Key Points
- Singapore’s DBS Bank holds an enormous stake in Ethereum (ETH), with 173,387 units valued at approximately $654.4 million.
- DBS Bank has reportedly profited over $200 million from its Ethereum holdings.
DBS Bank Limited, a Singapore-based financial institution, has a significant investment in the second-largest digital asset, Ethereum (ETH).
Data analysis from Nansen reveals that an Ethereum address linked to DBS bank holds an impressive 173,387 ETH units, which are worth about $654.4 million at the time of writing. The same analysis shows that DBS bank has made a profit exceeding $200 million through Ethereum.
DBS Bank’s Involvement in Ethereum
DBS bank has grown considerably over the past few decades, now managing nearly S$740 billion in assets. Recently, the bank has shifted its focus towards digital assets to meet increasing regional retail demand.
DBS bank has secured the necessary licenses in Singapore to expand its crypto operations and has consistently shown interest in the crypto asset industry with a long-term perspective.
In its Q2 2024 digital assets update, DBS bank reported that Singapore regulators are likely to establish clear crypto and CBDC regulations due to increased demand from retail traders, hedge funds, and high-frequency traders.
The bank has been accumulating Ethereum in anticipation of spot Ethereum ETF trading in the US. DBS bank has also heavily invested in the Web3 sector to increase its revenues and stay competitive. Last year, the bank collaborated with The Sandbox (SAND) to launch a metaverse program called DBS BetterWorld.
The Effect on the Market
The adoption of Ethereum by institutional investors like DBS bank has contributed to a more than 20% rally in the altcoin in recent weeks. Ethereum was trading at around $3,769 on a recent Thursday.
Hong Kong institutional investors have also been accumulating Ethereum through recently approved spot Ether ETFs. As a result, Glassnode data shows that Ethereum’s put-call open interest ratio on the Deribit exchange rose to 0.61 early on a recent Thursday, its highest level in at least a year. This increase suggests bullish sentiment among institutional investors.
The price of Ethereum against the US dollar has been retesting the final hurdle before potentially reaching its all-time high (ATH). The price of Ether has been closely following the price action of Bitcoin, especially after significant changes in the crypto regulatory landscape in the United States.
Moreover, a notable rebound in the ETH/BTC pair on the weekly time chart has indicated a potential reversal in Bitcoin dominance.
