Analyzing Ethereum’s Record-Breaking ETF Inflows
Despite Ethereum attracting $907.99 million in inflows for its Spot ETFs, the price action of ETH remains stagnant. Is this disconnect just a temporary pause in its upward trajectory?
While Bitcoin ETFs have been the talk of the town for their massive inflows, Ethereum has now taken center stage with its historic milestone in ETF investments.
Unprecedented Inflows for Ethereum ETFs
In the past week alone, Ethereum ETFs saw a remarkable influx of $907.99 million, setting a new record in the market.
The 10th of July witnessed the highest single-day inflows, with a staggering $383.10 million pouring into ETH ETFs, as reported by SoSo Value.
This surge in investments marks the strongest performance for ETH ETF funds since their introduction to the market on July 23, 2024.
On the other hand, Bitcoin ETFs continued to attract significant inflows, with a total of $2.21 billion pouring in over a two-day period between the 10th and 11th of July, according to Farside Investors.
These figures highlight Ethereum’s growing momentum and its emergence as a formidable choice among institutional investors.
Insights from the Community
Anthony Sassano, host of “The Daily Gwei Refuel” podcast, observed,
“The Ethereum network produces ~2,200 net new ETH per day. Yesterday, ETFs bought 138,000 ETH.”
Nate Geraci, President of ETF Store, also celebrated the record-breaking inflows into Bitcoin ETFs,
“Another $1+bil into spot bitcoin ETFs…*$2.7bil* for the week. Since Jan 2024 launch, there have been 7 days of inflows > $1bil. 2 of those are in past 2 days.”
The market sentiment remains bullish, although the price action of both assets tells a different story.
Understanding the Price Stagnation
Despite the significant inflows into ETFs, the price of Bitcoin and Ethereum hasn’t seen a substantial uptick.
At the time of writing, Bitcoin was trading at $117,948.54, down by 0.60%, while Ethereum was priced at $2,961.45, reflecting a 0.37% drop in the past 24 hours, as per CoinMarketCap.
The recent decline in crypto prices could be attributed to the broader market trend, but technical indicators suggest a different narrative.
With the Relative Strength Index (RSI) for both Bitcoin and Ethereum above the neutral 50 mark, there is still a bullish momentum at play.
Source: Santiment
This indicates that the recent price correction may be temporary, with buying pressure remaining strong amidst short-term volatility.
Future Projections for Bitcoin and Ethereum
Market forecasts and data from AMBCrypto suggest that both Bitcoin and Ethereum are poised for new all-time highs.
Analyst Ken Teng, known as Chicken Genius, predicts a potential surge for ETH towards $4,000 in the near term.
Ecoinometrics, an analytics firm, anticipates that the growing demand for ETFs could propel BTC to $119,000, based on their proprietary model insights.