Ethereum ETF Demand on the Rise: Will ETH Hit $4,000 Soon？

• Spot Ethereum ETF inflows hit a weekly high of $85.9 million, with BlackRocks total inflows reaching $1.4 billion.
• Ethereum outpaced Bitcoin in weekly gains, posting 18% growth versus Bitcoins 9.9%.
• The SEC delayed its decision on options trading for spot Ethereum ETFs amidst growing inflows and investor optimism.

Spot Ethereum ETF inflows have shown significant growth following key events in the financial and political landscape. The surge comes after Donald Trump‘s recent election victory and the Federal Reserve’s decision to cut interest rates by 25 basis points.

Notably, over the past three days, Ethereum ETFs have recorded consistent net inflows, reversing previous outflows. The net outflow, which previously stood at $550 million, has now decreased to $324 million. This shift indicates that investor confidence in Ethereum is beginning to rise again.

Ethereum ETF Flow (US$ million) – 2024-11-08

TOTAL NET FLOW: 85.9

ETHA: 59.8

FETH: 18.4

ETHW: 3.4

CETH: 0

ETHV: 4.3

QETH: 0

EZET: 0

ETHE: 0

ETH: 0

— Farside Investors (@FarsideUK) November 9, 2024

Weekly Ethereum ETF Inflows Hit New Highs

Additionally, alongside Bitcoins record-breaking surge above $77,000, Ethereum has experienced a resurgence in investor interest. The spot Ethereum ETF inflows reached a peak of $85.9 million on Friday, November 8. Weekly inflows totaled $155 million, marking a strong recovery driven by renewed market confidence.

Among these, BlackRock‘s Ethereum ETF (ETHA) led with $59.8 million in inflows. Fidelity’s ETF (FETH) followed with $18.4 million in net gains. Both funds have recorded steady inflows this week, signaling increased demand from institutional investors.

More so, the recent developments have propelled the total inflows into BlackRocks Ether ETF to $1.4 billion, as confirmed by Farside Investors. This milestone highlights a positive trajectory for Ethereum-focused investment vehicles.

However, it still lags behind the inflows currently witnessed by spot Bitcoin ETFs, which have seen even stronger investor momentum. Nevertheless, Ethereums inflows represent a healthy trend that could see further growth if the altcoin season gains pace.

Ethereum Outperforms Bitcoin in Weekly Gains

Besides, ethereum has also demonstrated resilience in its market performance. Over the past week, ETH posted an 18% gain, significantly outperforming Bitcoins 9.9% increase. The ETH/BTC pair, which has been on a downtrend for the past three years, showed a notable uptick, further supporting the recent bullish sentiment. Investors and analysts are closely watching these movements, considering that positive ETF inflow patterns often reflect optimism for long-term price appreciation.

Moreover, the broader market rally has pushed the Ethereum price past $3,000, representing a 4.86% gain. This movement helped ETH break through a critical resistance level while flipping the 200-day moving average. This breakthrough has turned investor sentiment from bearish to bullish. Analysts point out that if Ethereum maintains its current position, the next target could be a rally toward $4,000.

SEC Delays Options Trading for Ethereum ETFs

Amid these market developments, the U.S. Securities and Exchange Commission (SEC) recently delayed its decision on options trading for spot Ethereum ETFs. This decision has not deterred the growing interest in Ethereum-backed funds. The influx of investment has been seen as a positive sign that investor confidence remains intact despite regulatory delays.

Hence, the Ethereum price rally coincides with a period of accumulation lasting over 90 days, suggesting a strong upward trend. Analysts believe this accumulation phase may indicate the start of a larger market cycle. With investor optimism fueled by consistent inflows and a robust performance compared to Bitcoin, Ethereum may continue to capture significant attention in the market.