In more than three weeks, the Ethereum (ETH) price has not traded below the $4,000 level despite broader market fluctuations. The coin’s resilience might have caught the attention of large holders and traditional institutions, including Jack Ma’s Yunfeng Financial Group Limited. Recent revelations suggest that the Alibaba founder’s investment firm is betting huge on ETH.
Yunfeng Financial Group buys 10,000 ETH as reserve asset
Notably, as highlighted by a user in the community, Yunfeng Financial Group Limited (YFGL) has purchased 10,000 ETH. According to a voluntary announcement to potential investors and current stakeholders, the buy is described as a “reserve asset.”
At the time of purchase, the purchase cost the company a total of $44 million, inclusive of fees and expenses.
You Might Also Like
As per the update, the fund for the purchase came from the firm’s internal cash reserves. It assured stakeholders that developments in the crypto market would determine their next line of action.
Yunfeng Financial Group Limited, however, pointed out that the move aligns with its desire to expand its investment interest in Web3. It also looks to provide critical infrastructure support for real-world asset (RWA) tokenization.
These decisions reflect the belief of the Alibaba founder, who opines that digital currency could reshape the meaning of currency.
The move signals major institutional adoption of Ethereum as a strategic reserve asset, just like Strategy is doing with Bitcoin. This could positively impact ETH’s outlook in the market and catalyze price.
Can ETH push beyond $5,000?
As of this writing, Ethereum is changing hands at $4,349.04, representing a 0.78% decline in the last 24 hours. The coin had earlier soared to an intraday peak of $4,414.93 before facing resistance and dropping to the current level.
You Might Also Like
Despite the correction, trading volume remains high by a significant 24.61% at $40.41 billion. This suggests that investors see the current price level as an opportunity to accumulate the coin ahead of a possible rally.
With growing institutional interest in Ethereum, the asset might witness a bullish rally that could push it to flip the $5,000 mark.