In response to a recent report from CoinShares, Ethereum (ETH) saw an uptick in inflows last week, surpassing Solana’s (SOL) inflows for 2024, coinciding with the upcoming launch of exchange-traded funds (ETFs) that may allow regulated investment within the US for the second-largest cryptocurrency by market capitalization.
ETH Dominates Inflows
The report highlights Ethereum’s strong momentum recorded over the past month, with inflows reaching $45 million last week, amounting to the 12 months for over $103 million, outpacing Solana’s inflows year-to-date (YTD).
Solana, nonetheless, also witnessed inflows of $9.6 million in the course of the same period, leading to a YTD total of $71 million, which lags behind Ethereum’s inflows. Amongst other altcoins, Litecoin was the just one to receive inflows exceeding $1 million, with $2.2 million recorded last week.
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The report also shows that general digital asset investment products saw continued buying, with inflows totaling $1.35 billion last week, bringing the three-week inflow streak to $3.2 billion, impacting the recovery in crypto prices in recent weeks.
Moreover, trading volumes of exchange-traded funds increased significantly by 45% week-on-week to $12.9 billion. Nevertheless, these volumes represented only 22% of the broader crypto market volumes, indicating a comparatively lower proportion.
Bitcoin (BTC), alternatively, recorded $1.27 million in inflows last week, while short-bitcoin ETPs observed outflows of $1.9 million. Notably, these outflows amounted to $44 million since March, representing 56% of the assets under management (AuM).
Ethereum Prepares For ETF Breakthrough
The Securities and Exchange Commission (SEC) is predicted to completely approve spot Ethereum ETFs today, paving the best way for a second cryptocurrency investment vehicle within the US that might attract billions of dollars in retail and institutional investor money. James Seyffart, Bloomberg ETF expert, noted:
What are we expecting today for the Ethereum ETFs? We expect them to start trading tomorrow. Which means we must always see a bunch of filings on SEC site today that say the ETFs’ prospectuses have gone “effective”. Likely after or around market close.
Ahead of this regulatory victory for the market following the approval of Bitcoin ETFs in January, industry experts are speculating that the SEC’s approval of Ethereum ETFs will significantly impact the Ethereum blockchain and its decentralized finance (DeFi) protocol.
Mark Connors, the top of world macro strategy at Onramp, a Dallas-based financial services firm, referred to Ethereum because the “middle kid protocol,” highlighting the crucial test that the ETF launch represents for the DeFi ecosystem.
In response to Connors, the success and participation within the ETF launch on Tuesday will make clear Ethereum’s ability to take care of its market standing and attract sustained interest, together with increased inflows and adoption, which could significantly impact its price.
The 1-D chart shows ETH’s price decline recorded over the past 24 hours. Source: ETHUSD on TradingView.com
Despite being only a number of hours away from the beginning of ETF trading, ETH is trading at $3,450, down 1.5% within the 24-hour time-frame, supported by the $3,435 wall underneath the present price, which has prevented any further downward price motion since Friday.
Featured image from DALL-E, chart from TradingView.com