ETF inflows into Ethereum are surging, but ETH's price has not broken out immediately.
The Spot Ethereum ETF recorded $907.99 million in inflows over the past week, making a significant mark on the cryptocurrency market. Meanwhile, ETH's price is holding steady, indicating a temporary balance between supply and demand and investment expectations.
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The Spot Ethereum ETF reached $907.99 million in inflows – a new record after one week of issuance.
Bitcoin ETF inflows continue to be strong with $2.21 billion in 2 days, solidifying BTC's position.
ETH and BTC prices have not reacted positively despite strong inflows; the RSI indicates that buying pressure remains active.
What impact has the Ethereum ETF made on the market?
According to data from SoSo Value, the Spot Ethereum ETF attracted a total inflow of $907.99 million last week, with a record $383.10 million on July 10 – the highest daily record since the fund launched on June 23, 2024.
This event shows Ethereum's strong appeal within the institutional investment community, competing closely with the Bitcoin ETF that has dominated the market for a long time.
How does the Bitcoin ETF maintain its heat?
During the same period, the Bitcoin Spot ETF also recorded an impressive inflow of $2.21 billion in just 2 days (July 10-11), marking a record streak since its launch at the beginning of 2024, according to a report from Farside Investors.
This figure confirms Bitcoin's leading position and strong appeal to institutional investors.
"Ethereum's network generates about 2,200 new ETH daily, while the ETF bought up to 138,000 ETH in just one day."
Anthony Sassano, Host of "The Daily Gwei Refuel", 11/07/2024
How does the community react to this large inflow?
Anthony Sassano emphasized that the buying volume into the ETF is many times the new ETH supply daily, indicating strong demand that the market wants to embrace.
At the same time, Nate Geraci – President of ETF Store noted that the Bitcoin ETF continues to hit records with over $1 billion pouring in just one day, totaling $2.7 billion over the past week, creating a positive effect on the market.
"In 7 days, inflows into Bitcoin ETFs exceeded $1 billion since the beginning of 2024, with the last 2 days being the highest peaks."
Nate Geraci, President of ETF Store, 11/07/2024
Why haven't Ethereum and Bitcoin prices increased alongside ETF inflows?
Despite a strong inflow into ETFs, the prices of ETH and BTC have recorded a slight adjustment, with ETH down 0.37% and BTC down 0.60% in the last 24 hours according to CoinMarketCap.
The main reason stems from the overall market trend still being down; however, technical indicators like RSI above 50 show that buying momentum remains quite stable and investor sentiment is still optimistic.
What are the next price predictions for Bitcoin and Ethereum?
According to TinTucBitcoin and analyst Ken Teng (Chicken Genius), ETH has the potential to reach $4,000 in the near future if ETF inflows continue to be strong.
At the same time, Ecoinometrics predicts that Bitcoin could rise to $119,000 based on cash flow analysis models and demand from ETFs, opening new opportunities for the cryptocurrency market.
RSI chart and price movements of ETH, BTC (Source: Santiment)
Source: Santiment
Frequently Asked Questions
What is a Spot Ethereum ETF?
A Spot Ethereum ETF is an investment fund that tracks the actual price of Ethereum, allowing investors to access ETH through a safe and transparent financial product.
Why doesn't a strong ETF inflow lead to an immediate price increase?
Cryptocurrency prices are influenced by many factors, including macro trends, technicals, and sentiment; large ETF inflows drive long-term but may not have an immediate impact.
How long until ETH reaches $4,000?
According to experts, if ETF inflows remain strong and the overall market is positive, ETH could reach this milestone in the coming months.
What do current technical indicators show?
The RSI of ETH and BTC above 50 indicates strong buying pressure, supporting a bullish outlook in the medium term.
What impact does the Bitcoin ETF have on the market?
The Bitcoin ETF attracts large capital inflows, helping to increase market liquidity and confidence, thereby supporting a sustainable rise in BTC prices.
Source: https://tintucbitcoin.com/ethereum-etf-thu-hut-907-trieu-usd/
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