Ethereum ETF Investments Soar: Could ETH Price Hit $4,000 Soon?

The post Ethereum ETF Investments Soar: Could ETH Price Hit $4,000 Soon? appeared first on Coinpedia Fintech News

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

Here’s what you need to know.

BlackRock’s ETHA ETF Shows Positive Momentum

Spot Ether ETF flows have been erratic this week, with BlackRock and Grayscale leading the activity. On August 1, spot Ethereum ETFs saw a net inflow of $26.7 million, largely driven by an $89.6 million inflow into BlackRock’s iShares Ethereum Trust (ETHA) as per market data.

In contrast to Grayscale’s ETF, BlackRock’s ETHA ETF has demonstrated strong performance, with $89 million in inflows in the last 24 hours. This has boosted ETHA’s total net inflows to more than $710 million since its launch. However, Fidelity’s FETH also saw minor inflows of $11.4 million, contributing to the overall positive trend in Ethereum ETF investments.

Ethereum Current Market Scenario

Now that Grayscale’s ETF Outflow has seen a decline, it could be a good chance for ETH to capture the early takers. Ethereum has experienced increased whale activity recently. Lookonchain, recently noted that 3 wallets associated with Elwood have deposited 19,500 ETH, worth approximately $64 million, into Binance over the past two days. Such movements are believed to influence recent fluctuations in ETH prices. 

Moreover, today’s expiration of Ethereum options, involving $600 million in contracts, adds another layer of uncertainty. With a put-call ratio of 0.55 and a max pain point of $3,300, the market will likely experience further volatility as traders adjust their positions based on these large-scale expirations.

Will the ETH Price hit $4K?

In response to the recent sensitivity, analysts like Steno Research’s Mads Eberhardt anticipate that the outflows from Grayscale will slow, potentially driving up ETH prices. At the same time, Kaiko’s Will Cai noted that ETH’s price remains sensitive to ETF inflows. 

ETH, which last surpassed $4,000 on March 14, is currently around $3,200 as market sentiment shifts amid ongoing geopolitical events. Unlike Bitcoin ETFs, ETH hasn’t seen similar inflows, partly due to the SEC not approving staking. The total value locked on the Ethereum network remains steady at 17.8 million ETH, indicating limited growth. 

However, on the flip side, the strong support in July shows that buyers are keen, possibly pushing Ethereum prices up to $4,500. Currently, Ethereum is trading at around $3,165.

The Ethereum ETF market is gaining momentum—could it soon rival Bitcoin’s dominance?