Ethereum ETF Inflows Turn Positive
08 Nov, 2024 ● Coin news
Analysts are anticipating an Ethereum rally above $3,200, fueled by increased risk appetite following Donald Trump’s win in the United States presidential election.
Trump was declared the winner on Nov. 6, securing a second term as US president.
After the election results, spot Ether exchange-traded funds (ETFs) saw positive inflows, with $52.3 million in net inflows on Nov. 6 and $79.7 million on Nov. 7, according to data from Farside Investors.
These ETF inflows, combined with growing investor interest spurred by the Republican victory, could drive Ether’s price to $3,200 in the near term, Bitfinex analysts suggested.
They told Cointelegraph:
“We do expect Ether to soon break out of its long-term range, where there has been heavy accumulation. Our target for the next few months remains at $3,200, and as soon as Bitcoin’s market cap ratio against the total market cap tops — our expectation is that it will be around 60% — we can expect Ether to have a run.”
As of 8:10 am UTC on Nov. 8, the dominance of Bitcoin was at 60.4%, hinting that Ether may be poised for a breakout, according to this analysis.
Growing optimism about the post-election trajectory of the crypto market is evident among analysts, with Bitget Research’s chief analyst, Ryan Lee, predicting Bitcoin could surpass $100,000 by the end of 2024.
Ether’s price is already experiencing heightened volatility due to increased spot market buying activity since the elections.
Bitfinex analysts explained that this, along with rising Ether open interest, sets the stage for a breakout in the short term. They noted:
“Open interest has also skewed to abnormal levels, hitting $1.3 million versus just $800k in August in total, and our view based on Cumulative Volume Delta and bid/ask skew data that much of this is on the short side. This leads us to believe that in a month, Ether should start seeing good upside.”
Investor confidence is further highlighted by Bitcoin reaching a new all-time high of over $76,400 on Nov. 6, shortly after Trump’s election victory.
Edward Wilson, an analyst at Nansen, stated that a Trump administration would likely promote crypto innovation, including the launch of the first staked Ether ETF. He told Cointelegraph:
“As the regulatory environment will likely be pro-crypto, we may even see a staked ETH ETF approved early in this new administration, which will fully leverage the benefits of ETH as an asset. If this occurs, then ETH will become an exciting asset to watch. Put differently, ETH is cool again.”
Additional Ether-based ETFs could help propel Ether’s price past its all-time high of $4,800, which was reached on Nov. 16, 2021, almost three years ago.
For Bitcoin, ETF inflows made up about 75% of new investments when its price surpassed $50,000 in February, a month after spot BTC ETFs began trading in the US.
Sources:
https://cointelegraph.com/news/ether-3-2k-breakout-eth-etf-inflows-positive-post-election
