Ethereum ETF Sees $105M Weekly Inflow, Potential for ETH to Reach $3000

Spot Ethereum ETFs saw a flurry of activity in the past week, experiencing significant movements of both inflows and outflows that left the market sentiment mixed. By the week’s end, spot Ethereum ETFs had amassed nearly $105 million in net inflows, sparking discussions on the potential for Ethereum (ETH) to reach the $3,000 milestone.

The week kicked off positively for spot Ethereum ETFs on Monday, August 5, with net inflows totaling $48.8 million. Leading the charge was BlackRock, securing $47.1 million of these inflows, followed by Fidelity and VanEck with $16.2 million and $16.6 million, respectively.

However, Grayscale’s Ethereum Trust (ETHE) faced substantial outflows of $46.8 million, while its smaller Ethereum ETF saw modest inflows of $7.6 million, setting the tone for a mixed start to the week.

Tuesday, August 6, saw a continuation of positive momentum as Ether ETFs recorded $98.4 million in inflows. BlackRock once again dominated with a staggering $109.9 million in new investments, while Fidelity also performed well, attracting $22.5 million.

Conversely, ETHE continued to struggle with outflows reaching $39.7 million, indicating a cautionary sentiment despite the overall market positivity.

The midweek shift in trend emerged on Wednesday, August 7, with total net outflows for spot Ethereum ETFs amounting to $23.7 million. Grayscale’s ETHE faced a significant outflow of $31.9 million, overshadowing the modest $4.7 million inflow into Fidelity’s ETH ETF, signaling increased volatility.

Thursday, August 8, continued to see outflows, albeit at a reduced pace, with a total net outflow of $2.9 million for Ether ETFs. Grayscale’s ETHE led the outflows with $19.8 million, while its mini Ethereum ETF managed to attract $5 million in new investments.

The week concluded on Friday, August 9, with spot Ethereum ETFs recording a net outflow of $15.8 million. Despite this, the overall weekly total remained positive at $104.8 million, with BlackRock’s Ethereum ETF leading the inflows once again.

Despite the fluctuating performance of spot Ethereum ETFs, the price of ETH remained relatively stable throughout the week, trading between $2,300 and $2,650. However, market behavior suggests a potential shift in sentiment, with analysts predicting a push towards $3,000 for ETH.

Analysis from QCP Capital indicates a fundamental shift in the liquidity profiles of Bitcoin (BTC) and Ethereum, with BTC attracting institutional investors as “digital gold” while ETH may be losing some appeal as a speculative asset. This shift was evident in the price action on August 5, with ETH experiencing a 22% drop compared to BTC’s 16% decline, indicating evolving investor strategies.

As Ethereum price hovers around $2,600, there may be attempts to push it towards $3,000, but technical indicators suggest potential selling pressure that could drive the price down to $1,830.