Ethereum Eclipses Solana In 2024 Inflows Amid Hype For Upcoming ETF Launch
July 23 2024 - 1:00AM
NEWSBTC
According to a recent report from CoinShares, Ethereum (ETH) saw an
uptick in inflows last week, surpassing Solana’s (SOL) inflows for
2024, coinciding with the impending launch of exchange-traded funds
(ETFs) that will allow regulated investment in the US for the
second-largest cryptocurrency by market capitalization. ETH
Dominates Inflows The report highlights Ethereum’s strong momentum
recorded over the past month, with inflows reaching $45 million
last week, amounting to the year for over $103 million, outpacing
Solana’s inflows year-to-date (YTD). Solana, however, also
witnessed inflows of $9.6 million during the same period, resulting
in a YTD total of $71 million, which lags behind Ethereum’s
inflows. Among other altcoins, Litecoin was the only one to receive
inflows exceeding $1 million, with $2.2 million recorded last week.
Related Reading: US Spot Ethereum ETFs Poised To Draw $1.2 Billion
Monthly: Research Firm 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 inflow
streak to $3.2 billion, impacting the recovery in crypto prices in
recent weeks. Additionally, trading volumes of
exchange-traded funds increased significantly by 45% week-on-week
to $12.9 billion. However, these volumes represented only 22% of
the broader crypto market volumes, indicating a relatively lower
proportion. Bitcoin (BTC), on the other hand, recorded $1.27
million in inflows last week, while short-bitcoin ETPs observed
outflows of $1.9 million. Notably, these outflows amounted to $44
million since March, representing 56% of the 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 US that could attract
billions of dollars in retail and institutional investor cash.
James Seyffart, Bloomberg ETF expert, noted: What are we expecting
today for the Ethereum ETFs? We expect them to begin trading
tomorrow. That means we should see a bunch of filings on SEC site
today that say the ETFs’ prospectuses have gone “effective”. Likely
after or around market close. Related Reading: Here’s Why The
Bitcoin Price Crashed Below $66,000, Taking Shiba Inu And Dogecoin
With It Ahead of this regulatory victory 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, the head of global
macro strategy at Onramp, a Dallas-based financial services firm,
referred to Ethereum as the “middle kid protocol,” highlighting the
crucial 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 light on
Ethereum’s ability to maintain its market standing and attract
sustained interest, along with increased inflows and adoption,
which could significantly impact its price. Despite being only a
few hours away from the start of ETF trading, ETH is trading at
$3,450, down 1.5% in the 24-hour time frame, supported by the
$3,435 wall underneath the current price, which has prevented any
further downward price action since Friday. Featured image
from DALL-E, chart from TradingView.com
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