Key Insights
- Ethereum ETFs recorded nearly $3 billion in inflows in one week, which has outpaced Bitcoin’s by a wide margin.
- Treasury adoption and SEC guidance on staking boosted ETH demand among institutional investors.
- Analysts believe continued inflows could push ETH closer to or beyond its all-time high.
Ethereum ETFs have quickly become a hot talking point for investors. Over the last week alone, spot Ethereum ETFs attracted nearly $3 billion in inflows according to SoSoValue.
This figure was more than five times the inflows into Bitcoin ETFs. This brought in about $562 million during the same period. The surge comes as Ethereum’s price moved within 5% of its 2021 all-time high of $4,878.
Why Ethereum ETFs Are Beating Bitcoin’s
The dominance of Ethereum ETFs shows several essential things. Crypto treasury companies have massively expanded their ETH holdings. They have grown from $600 million to $11 billion in six weeks.
This accumulation has supported ETF inflows. Also, it has created a steady buying pressure that offsets profit-taking from retail investors. The U.S. SEC has done much for ETH by approving in-kind creations and redemptions for Bitcoin and Ethereum ETFs.
These changes have made Ethereum ETFs more appealing to institutional investors. These investors want direct crypto exposure without having to deal with custody requirements.
ETH Nears Major Price Milestone
Ethereum’s recent rally has pushed the asset close to its 2021 high. ETH was less than 2% away from reclaiming that level at one point before experiencing a slight pullback.
Analysts now believe that the ETF inflows could help determine whether Ethereum can break new records. According to analysts, if the demand for ETFs continues, Ethereum could hit $10,000 as more institutions experience FOMO.
Institutional players are also more willing to buy ETH over Bitcoin in the short term. Meanwhile, crypto treasury firms are absorbing billions in ETH. This has done much to prevent sharp declines in the asset, despite profit-taking.
All the above factors contribute to investors' confidence in Ethereum as a reliable investment vehicle. According to analyst Mando, Ethereum is expected to hit a new ATH this month. It can even reach a price high of $10,000 before the end of the year.
Another analyst, Ted Pillows, says that $ETH is trying to flip $4,367 resistance into support. This means that if the asset's price holds its round, Ethereum could “trade into the highs”.
The analyst mentioned that retesting lower is possible. However, the $4,225 zone remains a vital price level for the asset.
Staking and Unstaking Dynamics
In contrast to the strong ETF activity, Ethereum’s staking platforms show something interesting. In particular, over $3.8 billion worth of ETH is now queued for withdrawal, according to The Block data.
However, despite how bearish this might seem, analysts believe that much of this selling pressure is being balanced. This is done by new buying activity from ETFs and treasuries. Data from DefiLlama and other on-chain trackers also show that large institutional players are stepping in.
The balance between staking and unstaking is crucial. ETF demand adds further support. Together, they help keep Ethereum’s outlook strong now and in the future.
Outlook for Ethereum ETFs
Ethereum ETFs continue to attract strong institutional attention. This inflow is doing much to influence Ethereum’s movement in terms of price. If the current pace holds for the asset, Ethereum could be on its way to reclaiming its previous all-time highs.
Bitcoin is still the largest cryptocurrency by market cap. However, the ETFs are proving more attractive over the last few weeks.
Treasury adoption and SEC-friendly regulation are boosting ETH’s appeal. Strong staking demand may make it a top pick for large investors.
