Record Investment Inflows to US-Based Ethereum ETFs: A Sign of Institutional Interest?

Ethereum ETFs’ highest weekly inflow hit $854M – Boost for ETH?

In a surprising turn of events, the U.S. spot Ethereum ETFs have recorded their highest weekly inflow of $854.85 million, marking the third consecutive week of increased demand. This significant influx of capital has lifted the king altcoin’s price from around $3,000 to $4,000.

According to recent data, the ETF products have accumulated a staggering total net inflow of over $2.3 billion and $14 billion in assets under management. This renewed institutional interest is a positive sign for the cryptocurrency market as it boosts overall sentiment.

Despite some hesitation, ETH has managed to catch up with BTC after lagging behind for several months. A brief strengthening of the ETH/BTC ratio, which measures the relative performance of the two cryptocurrencies against each other, was seen in November and December. However, the ratio failed to break through the 0.040 barrier and briefly dipped below the 20-day Simple Moving Average (SMA), indicating that ETH is still far from fully strengthening against its peer.

Despite this setback, many analysts predict a new all-time high for ETH by January 2025 based on historical patterns. This surge in price could be attributed to increased whale activity, as 104 whales with over 100,000 ETH now control an astonishing 57% of all ETH supply, worth approximately $330 billion.

The data suggests that these massive investors are well-positioned for a likely Ethereum surge in the upcoming year.

Source: eng.ambcrypto.com