August has come with growing optimism for Ethereum (ETH), which could potentially influence its price. CoinShares survey notes that ETF approval and trading have shifted investor sentiment in favor of the asset.
The exchange data on inflows also indicate that selling pressure for Ethereum has subsided with demand recovery evident on the 24-hour charts. According to the survey, these factors could potentially have a bullish influence on price if the broader market does not weigh down ETH.
Ethereum price could get a boost from ETFs
According to CoinShares’ August Digital Asset Fund Manager Survey, investor sentiment has shifted in favor of Ethereum since spot ETFs started trading. Chief researcher James Butterfill noted that investors have added digital assets to their portfolios with client demands rising by 5% since April.
9 #Ethereum ETFs inflows 44,447 $ETH($110.1M), 2 consecutive days of net inflows!
Aug 7 Update:
10 #Bitcoin ETFsNetFlow: -1,899 $BTC(-$109.14)🔴#Fidelity outflows 1,137 $BTC($65.33M) and currently holds 175,858 $BTC($10.11B).
9 #Ethereum ETFsNetFlow: +44,447… pic.twitter.com/foD2PvmxJy
— Lookonchain (@lookonchain) August 7, 2024
44,447 ETH, close to $110 million poured into ETH ETFs on August 7 as part of its consecutive inflows.
The survey also notes that investor concerns around regulations have reduced. A rise in investor confidence due to reducing regulatory worries and increased adoption on the back of the ETH ETF launch is seen as a positive.
Ethereum’s net exchange flow | Source: IntoTheBlock
Meanwhile, according to data from IntoTheBlock, Ethereum’s exchange netflows, which measure the difference between tokens entering and leaving exchanges, have turned positive. Over the past 24 hours, there has been a net inflow of 24.76k ETH, after the 7-day change showed a net outflow of 45.61k ETH due to short-term selling pressure. Despite the weekly outflow, the 30-day change is also modest at 3.16k ETH.
ETH price could surge if the positive factors continue to influence it. These include the approval of ETH ETFs, growing investor interest, and Vitalik Buterin’s confidence in network advancements.
Vitalik Buterin continues to clarify the project’s roadmap
Ethereum co-founder Vitalik Buterin has been posting about the network’s progress and the direction it is taking. He recently explained added support for M31 and binary fields to Zorch. The development makes it easier for developers to create code on their GPUs using Python. In turn, the crypto players will also have new possibilities in cryptographic proofs and decentralized applications.
Buterin provided a summary of Ethereum block-building research by having multiple actors participate. He underlined that the approach enhances the inclusivity and efficiency of block construction. Buterin also underlined that Layer 1 and Layer 2 solutions confirm transactions within seconds at minimal costs. He also added in a response that innovations in zero-knowledge proofs (ZK ID and ZK voting) and successful projects like Farcaster, Lens, and Polymarket are adding to Ethereum’s progress.
