On Black Friday, Spot Ethereum ETF daily inflows exceeded those of Bitcoin ETFs, as investors pushed the price of ETH above $3,700 in anticipation of a new all-time high.
On Friday, the spot Ethereum ETFs experienced one of the largest daily inflows and surpassed the spot Bitcoin ETFs. This marks the first time that Ether ETFs have attained this milestone since their inception, indicating a change in investor sentiment. Consequently, the price of ETH increased by 4.27%, surpassing $3,720, thereby establishing the foundation for the subsequent rally to $5,000.
Increase in Spot Ethereum ETF Inflows
The institutional demand for spot Ether ETFs is gradually increasing. Yesterday, the total inflows into US Ether ETFs reached an astonishing $332 million, surpassing the daily inflows of $320 million into Bitcoin ETFs.
Ethereum ETFs have experienced net positive inflows for the fifth consecutive trading session. According to data from Farside Investors, the BlackRock Ether ETF (ETHA) alone generated $250 million in inflows on Friday, with Fidelity’s FETH following at $79.1 million.
The BlackRock Ether ETF (ETHA) has now exceeded $2 billion in total inflows since its launch in July, according to Nate Geraci, president of The ETF Store. This achievement underscores the robust investor demand and increasing institutional interest in Ethereum as a premier digital asset.
Conversely, the BlackRock Bitcoin ETF (IBIT) experienced $137.5 million in inflows yesterday. This indicates that the capital rotation from Bitcoin (BTC) to Ethereum (ETH) has commenced.
Inflows into Ether ETFs have been increasing, but Bitcoin ETF inflows have recently decreased. The BlackRock Bitcoin ETF (IBIT) experienced negative inflows for two consecutive days earlier this week. Additionally, recent reports indicate that BlackRock funds from the traditional portfolio have been purchasing millions of IBIT shares.
Will the price of ETH increase to $5,000?
While anticipating new all-time highs above $5,000, market analysts have become optimistic about the Ethereum price. ETH’s price has increased by 4% as of press time, surpassing the critical resistance of $3,700, and speculators have established an immediate target of $4,000.
The price chart of Ethereum has confirmed a breakout from an inverse head-and-shoulders pattern, indicating the potential for bullish momentum in the future. According to analyst ‘Trader Tardigrade,’ a retest of the $3,538–$3,445 range could provide a final buying opportunity at these levels before ETH reaches the pattern’s projected high of $5,800.
The spot Ethereum ETF inflows could serve as additional impetus for the ETH rally to ascend to new all-time highs. This could also initiate the eagerly anticipated altcoin season, which could result in a significant rally in the crypto market.
