Investment in Ethereum ETF Increases by $150 Million, Ethereum's Price Aims for $3,000 as Golden Cross Occurs
In a striking turn of events, the cryptocurrency market has witnessed a significant shift in institutional sentiment, with Ethereum (ETH) emerging as a favored choice over Bitcoin (BTC). This trend is evident in the recent inflows and outflows of funds in various Exchange-Traded Funds (ETFs).
Data reveals a surge in institutional capital rotation out of Bitcoin ETFs, with net outflows amounting to approximately $582 million in a single week. On the other hand, Ethereum ETFs have experienced strong inflows, including a major $492 million influx into BlackRock's Ethereum fund alone.
BlackRock, a leading global investment manager, now holds 1,773 million units of Ethereum, and its Ethereum-based ETF (ETHA) has seen net inflows of $85.4 million, bringing its total net inflows to over $5.6 billion. This shift in investor sentiment marks a clear preference for Ethereum's decentralized network and growth prospects over Bitcoin.
This trend is further underscored by BlackRock's recent $40.7 million investment in Ethereum spot ETFs, which signifies growing institutional confidence in Ethereum as a key digital asset bridging traditional finance and decentralized networks.
Ethereum's robust ETF inflows can be attributed to its fundamental strengths such as the adoption of upgrades like the Pectra upgrade simplifying smart contracts and transaction fees, growing use cases in traditional finance, and the strengthening Decentralized Finance (DeFi) ecosystem.
Meanwhile, Bitcoin continues to see adoption mostly from treasury companies using it as an inflation hedge, but the pace of inflows into Bitcoin ETFs appears less compelling than Ethereum's currently.
Recent whale activity and rising ETF inflows have boosted Ethereum's price, which has shown strength, consolidating near $2,500 with confidence. A notable event in the Ethereum market is the withdrawal of 10,000 ETH (worth approximately $25.97 million) by a wallet address identified as 0xACc7 from Binance.
This wallet, potentially linked to crypto firm Matrixport, has been active on both Binance and OKX, and the withdrawal suggests aggressive accumulation activity. A "Golden Cross" pattern is visible on the ETH price chart, with $2,800 identified as a key breakout level. If breached, this could lead to a continuation toward the $3,000 to $4,000 region.
As of now, Ethereum's current price stands at $2,563. The 24-hour volume of Ethereum is $13.78 billion, with a market cap of $309.42 billion. ETHA's net assets under management are currently $4.588 billion.
This institutional pivot toward Ethereum, driven by its expanding ecosystem and ETFs attracting substantial capital, contrasts with the outflows seen in Bitcoin ETFs. The divergence in ETF inflows is notable, with Bitcoin seeing slowing inflows while Ethereum has experienced accelerating inflows.
Institutional investors are rotating capital out of Bitcoin ETFs, with net outflows of approximately $582 million, while Ethereum ETFs, such as BlackRock's Ethereum fund, have experienced strong inflows, including a major $492 million influx. This shift in capital investment is indicative of a growing preference for Ethereum's network and prospects in the realm of decentralized technology and finance.
