Ethereum’s Institutional Funds Flip Green Ahead of ETF Launch

Ethereum (ETH) bulls anticipate surging price gains ahead of the spot ETF launch date in the United States. Recent market activity points to renewed inflows to the asset’s institutional funds in the past weeks. The week leading up to the approval saw the asset register a 22% weekly jump in price booting other altcoins. 

Ethereum trades at $3,777 at press time, a 1.43% decline in the last 24 hours while monthly gains stand at 19% in the green zone. Overall the price boost can be seen from increasing demand, decentralized finance (DeFi) ecosystem, and institutional funds. Just like Bitcoin institutional products, Ethereum products have gradually garnered steam. 

Ethereum Products See Inflows

New data from CoinShares shows increased flow to Ethereum’s institutional funds. Last week, ETH-based products hit $33.5 million as users await new products. This movement took monthly numbers to $21.6 million while yearly inflows flipped to $11 million. Last week marked the second straight week of positive flows and was crucial because the number tapped the green zone.

The previous week saw Ethereum funds record $35.5 million. At that point, monthly flows were in the red zone with $11 million outflows while year-to-date numbers stood at $22 million. These outflows were sparked by plunging sentiment at the start of the second quarter. As numbers flip positive, institutional investors eye price growth after ETF launch. 

Ethereum institutional investors have backed the asset this year drawing similar lines with Bitcoin as crypto products see inflows.

Bitcoin ETF as Triggering Factor 

On Jan 11, the United States Securities and Exchange Commission (SEC) approved Bitcoin ETFs which saw surging inflows. The approved funds recorded almost $60 billion with inflows with growing weekly numbers. This momentum spurred the asset price to a new all-time high above $73k.

The success of Bitcoin ETFs drew attention to potential Ethereum ETFs. Institutional investors have cited the network as the largest smart contract blockchain as a possible reason for expected price growth and adoption.

Also Read: Less Popular But Profiting Solana Coins You Might Have Missed

The post Ethereum’s Institutional Funds Flip Green Ahead of ETF Launch appeared first on CoinGape.


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