Despite Grayscale’s Ethereum Trust Fund’s cumulative outflows exceeding $2 billion, the daily net inflows of the U.S. spot Ethereum ETF have turned positive. Many cryptocurrency analysts believe that the Ethereum ETF will soon follow the path of Bitcoin.

BlackRock's ETHA ETF Shows Positive Momentum

Spot Ethereum ETF flows have been volatile this week, with BlackRock and Grayscale leading the way. According to market data, spot Ethereum ETFs saw net inflows of $26.7 million on August 1, mainly due to an inflow of $89.6 million into BlackRock’s iShares Ethereum Trust (ETHA).

Compared to Grayscale's ETF, BlackRock's ETHA ETF has performed strongly, with inflows of $89 million in the past 24 hours. This brings ETHA's total net inflows since launch to over $710 million. However, Fidelity's FETH also saw a small inflow of $11.4 million, driving the overall positive trend of Ethereum ETF investments.

Current Ethereum Market Situation

Now that Grayscale’s ETF outflows have declined, this could be a good opportunity for ETH to attract early investors. Ethereum’s whale activity has increased recently. Lookonchain recently noted that three wallets associated with Elwood deposited 19,500 ETH, worth approximately $64 million, into Binance in the past two days. It is believed that such movements will affect the near-term volatility of ETH prices.



Additionally, the Ethereum options expiring today involve $600 million in contracts, adding another layer of uncertainty. With a put/call ratio of 0.55 and a maximum pain point at $3,300, the market could see further volatility as traders adjust their positions based on these massive expiring contracts.

Will ETH price reach $4,000?

In response to the recent sensitivity, analysts such as Mads Eberhardt of Steno Research expect Grayscale’s outflows to slow, which could push ETH prices higher. Meanwhile, Kaiko’s Will Cai noted that ETH’s price remains sensitive to ETF inflows.

ETH last breached $4,000 on March 14 and is currently trading around $3,200 as sentiment shifts amid ongoing geopolitical events. Unlike Bitcoin ETFs, ETH has yet to see similar inflows, in part due to the SEC not approving staking. The total value locked on the Ethereum network remains stable at 17.8 million ETH, indicating limited growth.

However, on the other hand, strong support in July indicates strong buyer enthusiasm that could push Ethereum prices to $4,500. Currently, Ethereum is trading around $3,165.

The Ethereum ETF Market Is Booming — Will It Soon Rival Bitcoin’s Dominance?