The price of Ethereum reaches $4,000 for the first time since March as ETF demand rises
The second largest cryptocurrency crossed above $4,000 on Thursday as Ethereum ETF products saw substantial inflows.
The price of Ethereum (ETH) jumped above $4,000 on Friday, a mark not seen since it briefly hit that threshold in March.
The upward movement is due to the increasing demand for Ethereum ETFs, with funds recording their largest collective net daily inflow of over $428 million on December 5, according to data from CoinGlass.
Major inflows for Ethereum ETFs come amid growing excitement among analysts. Plume CEO Chris Yin told Decrypt in November that the expectation of more favorable cryptocurrency regulation under elected President Donald Trump is leading to a "delayed excitement" for the funds, which began trading in the United States in July.
That excitement showed up in the order books this week, with Ethereum ETF products recording over $750 million in total net inflows according to CoinGlass, all while the price of Bitcoin broke the milestone of $100,000 for the first time.
Both Ethereum and Bitcoin ETFs have recorded record inflows since Trump secured a second term in the White House a month ago.
Ethereum has lagged behind other major cryptocurrencies like Solana (SOL) and Bitcoin (BTC) for much of the year, failing to reach new all-time highs like others. However, among major assets, it has recorded the largest gain in the last week, jumping over 10% in that time.
Despite breaking the $4,000 mark, Ethereum remains at a 17% discount to its all-time high of $4,878, recorded in November 2021, according to CoinGecko. ETH is currently trading at $4,024, a gain of nearly 4% in the last 24 hours.
