According to a recent report from CoinShares, Ethereum (ETH) saw a surge in inflows last week, surpassing Solana’s (SOL) inflows in 2024, coinciding with the imminent launch of exchange traded funds (ETFs) that will allow regulated investment in the US for the second largest cryptocurrency by market capitalization.
ETH dominates flows
O report highlights the strong momentum Ethereum has seen over the past month, with inflows reaching $45 million last week, bringing its total to over $103 million for the year, surpassing Solana’s inflows year-to-date (YTD).
Solana, however, also witnessed inflows of $9.6 million during the same period, resulting in a year-to-date total of $71 million, which lags behind Ethereum. Appetizer. Among other altcoins, Litecoin was the only one to receive inflows exceeding $1 million, with $2.2 million recorded last week.
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The report also shows that general digital asset investment products saw continued buying, with inflows totaling $1.35 billion last week, bringing the three-week streak of inflows to $3.2 billion, impacting the recovery in cryptocurrency prices in recent weeks.
Additionally, exchange-traded fund trading volumes increased significantly by 45% week-over-week to $12.9 billion. However, these volumes represented only 22% of the broader volume crypto market volumes, indicating a relatively smaller proportion.
Bitcoin (BTC), on the other hand, saw inflows of $1.27 million last week, while short-term bitcoin ETPs saw outflows of $1.9 million. Notably, these outflows amounted to $44 million since March, representing 56% of assets under management (AuM).
Ethereum Prepares for ETF Breakthrough
The Securities and Exchange Commission (SEC) is expected to fully approve spot Ethereum ETFs today, paving the way for a second cryptocurrency investment vehicle in the U.S. that could attract billions of dollars in cash from institutional and retail investors. Bloomberg ETF expert James Seyffart said: observed:
What do we expect for Ethereum ETFs today? We expect them to start trading tomorrow. That means we should see a bunch of filings on the SEC website today that say the ETF prospectuses have become “effective.” Probably after or close to the market close.
Ahead of this regulatory win for the market following the approval of Bitcoin ETFs in January, industry experts are speculating that the SEC’s approval of Ethereum ETFs will significantly impact the Ethereum blockchain and its decentralized finance (DeFi) protocol.
Mark Connors, head of global macro strategy at Onramp, a Dallas-based financial services firm, referred to to Ethereum as the “intermediary protocol,” highlighting the crucial test that the ETF launch represents for the DeFi ecosystem.
According to Connors, the success and participation in Tuesday’s ETF launch will shed light on Ethereum’s ability to maintain its position in the market and attract sustained interest, along with increased inflows and adoption, which could significantly impact its price.
Although there are only a few hours left until the ETF starts trading, ETH is trading at $3,450, down 1.5% over the 24-hour period, supported by the $3,435 wall below the current price, which has prevented any further downward price action since Friday.
Featured image of DALL-E, chart from TradingView.com