As a seasoned researcher with over two decades of experience in the financial markets, I have witnessed countless trends and cycles, from the dot-com bubble to the global financial crisis. In recent years, my focus has shifted towards digital assets, particularly Ethereum, given its transformative potential and growing institutional interest.
For six days straight, U.S.-based Ethereum Exchange Traded Funds (ETFs) have experienced an increase in investments. Specifically on Wednesday, these ETFs received a total of approximately $146 million, with Fidelity’s FETH account alone taking in over $100 million.
After Donald Trump’s victory last week, there has been a shift in the net inflows for Ethereum ETFs, with more money flowing in compared to out. Over the past six trading days, these ETFs have seen over $800 million in investments, according to data from Farside Investors.
Over the last three days, a significant portion of inflows occurred, marking these as the busiest single-day inflow periods since the ETFs were first introduced. This suggests that there is high investor enthusiasm.
Initially after their launch in late July 2024, Ether ETFs didn’t gain much popularity compared to Bitcoin ETFs. For nearly three months, a total of $500 million was withdrawn from these ETFs. However, within the past week, this trend has changed dramatically, with more than $240 million now flowing into these investment products.
Will Spot Ethereum ETF Inflows Continue?
Lately, there’s been a rise in investments towards Ethereum ETFs, coinciding with the overall market uptrend and Ethereum reaching a value of $3,300. Yet, investors find themselves uncertain about whether this trend will persist in the future.
Even with these substantial investments flowing into Bitcoin, institutional investors tend to prioritize Bitcoin Exchange-Traded Funds (ETFs). Initially, Bitcoin ETFs had a headstart, but Ethereum ETFs have struggled to keep pace and account for just one hundredth of the inflows experienced by traditional Bitcoin ETFs.
It’s unclear when Ethereum (ETH) might start performing as well as Bitcoin (BTC), especially if stricter regulations favoring Bitcoin are introduced by the Trump administration, which could potentially enlarge the performance gap between the two.
Nevertheless, some market experts argue against the comparison of Ethereum and Bitcoin, viewing them as separate entities. They anticipate that Ethereum ETFs will draw significant institutional investments in the year 2025, as suggested by Bitwise CIO Matt Hougan’s statement.
2025 may bring unexpected changes in ETH ETF investments, as there’s an increasing appetite among institutions for gaining exposure to Ethereum.
Moreover, it has been disclosed through a recent SEC filing that BlackRock Advisors have been acquiring shares of Ethereum ETFs they themselves manage.
Moreover, it seems that Blackrock Advisors have acquired an Ethereum ETF through one of their mutual funds.
That’s a first, right? @EricBalchunas
— matthew sigel, recovering CFA (@matthew_sigel) November 14, 2024
ETH Price Rally to $4,000?
After experiencing a 40% increase on its weekly chart following Donald Trump’s victory, the Ethereum price reached $3,300. However, the bulls have temporarily paused at this level. Currently, Ethereum is encountering significant resistance near the $3,260 mark, and the bulls must break through this barrier to continue their upward momentum.
#Altcoins #Ethereum $5,700 as Intermediate Target 🎯#ETH is at a crucial level: Kijun 🔵.
As a researcher studying market trends, when the price surpasses the Kumo Cloud, I anticipate that the 100% Fibonacci extension will exert an attractive force, potentially pulling the price upward.
— Titan of Crypto (@Washigorira) November 9, 2024
After bulls complete this move, market experts anticipate Ethereum (ETH) prices reaching unprecedented peaks surpassing $5,500. It will be intriguing to observe if ETH joins the altcoin surge in 2025, potentially soaring up to $10,000, as suggested by multiple analysts.
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2024-11-14 11:47