Ethereum’s Institutional Funds Flip Green Ahead of ETF Launch
Highlights
- Ethereum’s institutional funds see records $33.5 million inflows.
- This comes as bulls anticipate the spot Ethereum ETFs launch date.
- ETH holders remain positive on a price jump amid surging network activity.
Ethereum (ETH) bulls anticipate surging price gains ahead of the spot ETF launch date in the United States. Recent market activity points to renewed inflows to the asset’s institutional funds in the past weeks. The week leading up to the approval saw the asset register a 22% weekly jump in price booting other altcoins.
Ethereum trades at $3,777 at press time, a 1.43% decline in the last 24 hours while monthly gains stand at 19% in the green zone. Overall the price boost can be seen from increasing demand, decentralized finance (DeFi) ecosystem, and institutional funds. Just like Bitcoin institutional products, Ethereum products have gradually garnered steam.
Ethereum Products See Inflows
New data from CoinShares shows increased flow to Ethereum’s institutional funds. Last week, ETH-based products hit $33.5 million as users await new products. This movement took monthly numbers to $21.6 million while yearly inflows flipped to $11 million. Last week marked the second straight week of positive flows and was crucial because the number tapped the green zone.
The previous week saw Ethereum funds record $35.5 million. At that point, monthly flows were in the red zone with $11 million outflows while year-to-date numbers stood at $22 million. These outflows were sparked by plunging sentiment at the start of the second quarter. As numbers flip positive, institutional investors eye price growth after ETF launch.
Ethereum institutional investors have backed the asset this year drawing similar lines with Bitcoin as crypto products see inflows.
Bitcoin ETF as Triggering Factor
On Jan 11, the United States Securities and Exchange Commission (SEC) approved Bitcoin ETFs which saw surging inflows. The approved funds recorded almost $60 billion with inflows with growing weekly numbers. This momentum spurred the asset price to a new all-time high above $73k.
The success of Bitcoin ETFs drew attention to potential Ethereum ETFs. Institutional investors have cited the network as the largest smart contract blockchain as a possible reason for expected price growth and adoption.
Also Read: Less Popular But Profiting Solana Coins You Might Have Missed
- Roger Ver, ‘Bitcoin Jesus,’ Settles $48M Tax Fraud Case with U.S. DOJ
- Senate Democrats’ New DeFi Proposal Stalls Crypto Market Structure Talks
- Zcash (ZEC) Extends Rally Above $200 as Privacy Narrative Gains Reflexive Momentum
- Pump.fun Rival Zora Rallies Over 30% Following Robinhood Listing
- Peter Brandt Lists XRP Among Shorts Amid Crypto Market Crash
- Dogecoin Price Prediction as $23M Leaves Exchanges—Is the Parabolic Phase Beginning?
- Pi Network Price Collapses as Analyst Proposes Turnaround Tweaks
- Solana (SOL) Price Prediction: Analyst Eyes $1,300 as SOL DAT Company Plans 5% Supply Acquisition
- Bitcoin Price Prediction as US Govt. Shutdown Extends- What’s Next for BTC?
- Solana Price Megaphone Points to a Parabolic Move as SOL Treasuries Near $3B
- XRP Price Prediction Amid ETF Approval Roadblock as Analyst Warns of $2.72 Dip
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
