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Ethereum ETFs’ highest weekly inflow hits $854M – A Potential Boost for ETH?
The past week has seen a remarkable surge in the inflows of Ethereum-focused Exchange-Traded Funds (ETFs), with a staggering $854.85 million poured into these products. This influx of capital marks the highest weekly inflow since the ETF’s launch and is likely to have a substantial impact on the overall sentiment around ETH.
It is essential to note that this surge in demand has not been seen before, as previous months saw relatively muted investor interest. The sudden turn-around could be indicative of institutional investors finally taking notice of Ethereum’s immense potential. In fact, since November, the U.S. spot Ethereum ETFs have reported strong cumulative inflows, pushing ETH prices from $3,000 to a new high of over $4,000.
This surge in demand is not limited to one particular ETF product, as multiple players such as BlackRock’s ETHA, Fidelity’s FETH, Grayscale’s ETH, and Bitwise’s ETHW have all seen substantial inflows. Notably, BlackRock’s ETHA has taken the lead with a massive $3.2 billion in new capital.
Despite this surge, it is important to consider that ETH’s relative performance against Bitcoin (BTC) still leaves much to be desired. The ETH/BTC ratio, which measures ETH’s performance compared to BTC, has briefly strengthened but ultimately failed to break through significant resistance at 0.040 and slipped below the 20-day Simple Moving Average (SMA). This could indicate that ETH is not yet fully prepared for a breakout against its leading cryptocurrency counterpart.
However, analysts are optimistic about ETH’s future prospects, citing historical patterns as evidence of an imminent all-time high by January 2025. The potential for significant upside in ETH prices should not be underestimated, especially given the unprecedented $854 million inflow into ETFs.
Furthermore, it is crucial to note that a staggering 104 whales, each holding over 100,000 ETH tokens, now control an astonishing 57% of all ETH supply worth $330 billion. This concentration of wealth and conviction among these large-scale investors underscores the bullish conviction surrounding Ethereum’s near-term prospects.
It is difficult not to see this substantial influx of capital as a clear sign that institutional investors are reevaluating their stance on Ethereum, which could lead to a significant rally in prices if sustained.
Source: eng.ambcrypto.com
