Ethereum Sees Increased Inflows
A recent report from CoinShares reveals that Ethereum (ETH) experienced a surge in inflows last week, surpassing those of Solana (SOL) for the current year. This growth coincides with the impending launch of exchange-traded funds (ETFs) that will enable regulated investment in the US market for the second-largest cryptocurrency by market capitalization.
- Ethereum observed a strong momentum over the last month, with inflows totaling $45 million last week, reaching over $103 million for the year, surpassing Solana’s YTD inflows.
- Solana also saw inflows of $9.6 million during the same period, resulting in a YTD total of $71 million, behind Ethereum’s inflows. Litecoin was the only other altcoin to receive inflows exceeding $1 million, recording $2.2 million last week.
The general digital asset investment products also experienced continuous buying, with inflows amounting to $1.35 billion last week, contributing to a three-week streak of inflows totaling $3.2 billion. This trend has positively impacted the recent recovery in crypto prices. Additionally, the trading volumes of exchange-traded funds surged by 45% week-on-week, reaching $12.9 billion. However, these volumes only represented 22% of the broader crypto market volumes.
Ethereum’s ETF Preparation
The Securities and Exchange Commission (SEC) is anticipated to grant full approval for spot Ethereum ETFs today, opening the doors for the second cryptocurrency investment option in the US. This move is expected to attract significant retail and institutional investor funds. James Seyffart, a Bloomberg ETF expert, mentioned that the Ethereum ETFs are likely to commence trading soon, following the effective approval of their prospectuses. This development comes after the approval of Bitcoin ETFs earlier this year.
What are we expecting today for the Ethereum ETFs? We expect them to begin trading tomorrow. That means we should see a bunch of filings on SEC site today that say the ETFs’ prospectuses have gone “effective”. Likely after or around market close.
Industry experts predict that the SEC’s approval of Ethereum ETFs will have a significant impact on the Ethereum blockchain and its decentralized finance (DeFi) protocol. Mark Connors, the head of global macro strategy at Onramp, referred to Ethereum as the “middle kid protocol,” emphasizing the critical test that the ETF launch presents for the DeFi ecosystem. He believes that the success and participation in the ETF launch will showcase Ethereum’s ability to maintain its market position, attract interest, and drive price appreciation.
ETH is currently trading at $3,450, experiencing a 1.5% decrease in the 24-hour timeframe. The price is supported by a $3,435 resistance level, preventing further downward movement since Friday.
Hot Take: Embracing Ethereum’s ETF Potential
As Ethereum gears up for a potential ETF breakthrough, investors can expect significant changes in the crypto market landscape. The approval of spot Ethereum ETFs by the SEC could mark a pivotal moment for the cryptocurrency, influencing its adoption, price trajectory, and overall market dynamics. Keep a close eye on the developments surrounding Ethereum ETFs as they have the potential to shape the future of the crypto industry.
By
By
By
By