Market Overview

As the price of Ethereum (ETH) soars, the inflow of funds into the US spot Ethereum ETF is also increasing rapidly, with total inflows exceeding $800 million in the past week. This growth was mainly affected by the recent election of Donald Trump, and the net inflow of ETFs turned positive for the first time, ending the previous trend of fund outflows.

Background of capital inflows

According to the prediction of Matt Hougan, Chief Investment Officer of Bitwise, Ethereum ETF is expected to attract more and more attention from institutional investors by 2025. The realization of this trend is closely related to the price of Ethereum breaking through the new high of $5,000. Recent data shows that the US spot Ethereum ETF has achieved capital inflows for six consecutive days, with a total inflow of $146 million on Wednesday, of which Fidelity's FETH alone attracted more than $100 million.

In the past six trading days, these ETFs have attracted more than $800 million in inflows, showing strong investor interest. It is worth noting that this inflow was mainly concentrated in the past three days, becoming the first three single-day inflow peaks since the launch of these ETFs.

Ethereum ETF Market Performance

Since its launch at the end of July 2024, the market response of the spot Ethereum ETF has been relatively weak and has failed to gain as much attention as the Bitcoin ETF. By early November, total outflows from these ETFs reached $500 million. However, the situation has changed significantly in the latest week, with total inflows into spot Ethereum ETFs exceeding $240 million, showing a shift in market sentiment.

Although the recent inflows into Ethereum ETFs are closely related to the overall market rebound and the rise in ETH prices to $3,300, investors are still confused about the sustainability of this trend. Despite the good inflows into Ethereum ETFs, institutional investors still prefer Bitcoin ETFs. Bitcoin ETFs started earlier in the market, and the inflows of Ethereum ETFs are only 1/100 of those of Bitcoin ETFs, which may explain why Bitcoin has outperformed other altcoins in the market.

Some market analysts believe that it is not reasonable to compare Ethereum and Bitcoin because the two are fundamentally different. They believe that the Ethereum ETF will also attract capital inflows from institutional investors in 2025. Matt Hogan said: "The inflow of funds from the Ethereum ETF will be surprising, and institutional demand for Ethereum is growing."

Additionally, recent SEC filings show that BlackRock Advisors is also buying its own Ethereum ETF.

Upward potential for ETH price

After Donald Trump's election, Ethereum prices rose 40% in a week and have now reached $3,300, although bulls have temporarily paused here. Currently, Ethereum prices face strong resistance at $3,260, and bulls need to break through this level to push prices further up. Once broken, market analysts predict that Ethereum prices will be expected to reach a new high of $5,500.

Looking ahead, analysts are excited about Ethereum’s performance in the altcoin market by 2025, even predicting that its price could climb to $10,000.