Ethereum (ETH) saw an raise in inflows last week, surpassing Solana’s (SOL) inflows in 2024, coinciding with the upcoming launch of listed funds (ETFs) that will enable regulated investments in the second-largest cryptocurrency by market capitalization in the U.S.
ETH dominates inflows
This report highlights the sturdy momentum Ethereum has seen over the past month, with inflows reaching $45 million last week, bringing its annual revenue to over $103 million, surpassing Solana’s year-to-date (YTD) inflows.
However, Solana also saw an inflow of $9.6 million during the same period, bringing its year-to-date total to $71 million, which is worse than Ethereum. inflowsAmong other altcoins, Litecoin was the only one to receive inflows exceeding $1 million, with $2.2 million recorded last week.
The report also shows that overall digital asset investment products continued to enjoy buyer interest, with inflows totaling $1.35 billion last week, taking the three-week streak of inflows to $3.2 billion, which has fueled a rebound in cryptocurrency prices in recent weeks.
In addition, ETF trading volumes rose significantly by 45% from the previous week to $12.9 billion. However, these volumes only accounted for 22% of the broader cryptocurrency market volumes, which indicates a relatively lower share.
On the other hand, Bitcoin (BTC) saw inflows of $1.27 million last week, while short-bitcoin ETPs saw outflows of $1.9 million. Interestingly, these outflows amount to $44 million since March, which is 56% of assets under management (AuM).
Ethereum Prepares for ETF Breakthrough
The Securities and Exchange Commission (SEC) is expected to fully approve Ethereum spot ETFs today, paving the way for the second cryptocurrency investment vehicle in the U.S. that could attract billions of dollars in cash from retail and institutional investors. Bloomberg ETF expert James Seyffart recorded:
What do we expect from Ethereum ETFs today? We expect them to begin trading tomorrow. That means we should see a slew of documents on the SEC website today saying that the ETF prospectuses have become “effective.” Likely at or around market close.
In the wake of this regulatory victory in the market following the approval of Bitcoin ETFs in January, industry experts are Speculating that the SEC’s approval of ETFs will have a significant impact on the Ethereum blockchain and its decentralized finance (DeFi) protocol.
Mark Connors, head of global macro strategy at Onramp, a Dallas-based financial services firm, reference was made to Ethereum as a “protocol intermediary,” underscoring the key test that the ETF launch represents for the DeFi ecosystem.
According to Connors, the success and participation in the ETF launch on Tuesday will shed airy on Ethereum’s ability to maintain its market position and attract continued interest, as well as an raise in fund inflows and adoption, which could significantly impact its price.
Even though there are only a few hours left until ETF trading begins, ETH is trading at $3,450, down 1.5% in 24 hours. It is supported by the $3,435 barrier below the current price, which has prevented further price declines since Friday.
Featured image from DALL-E, chart from TradingView.com
