Ethereum
Bitcoin ETFs See Inflows of Nearly $2 Billion, Traders Predict Ether (ETH) to Hit $10,000 in 2024
Crypto investment products saw nearly $2 billion in inflows last week to help extend their five-week run to over $4.3 billion, asset manager CoinShares said in a report from Monday.
Exchange-traded product (ETP) trading volumes reached $12.8 billion for the week, up 55% from the previous week. Bitcoin dominated investment activity with inflows of over $1.97 billion for the week, while Ether (ETH) saw its best week of inflows since March with almost $70 million. .
Bitcoin spot exchange-traded fund (ETF) purchasing activity in the United States has picked up since mid-May after a dismal few weeks in April, which saw days of zero net inflows for all products and even major product releases such as BlackRock’s IBIT. . However, the flows have since resumed – with the IBIT becoming the largest Bitcoin ETF last week amassing more than $20 billion in assets since its issuance in January.
“Unusually, inflows were seen across almost all providers, with a continued slowdown in outflows from incumbents,” said CoinShares analyst James Butterfill. “The positive price action saw total assets under management (AuM) surpass the $100 billion mark for the first time since March this year.”
Butterfill added that the ETH purchase was likely in reaction to the SEC’s surprise decision to allow ether spot ETFs.
Meanwhile, some traders expect flows into ETH products to continue in the coming months, with an expected rebound towards the end of the year.
“$5-10 billion in new capital could flow through ether products in the near to medium term,” Ed Hindi, chief investment officer at Tyr Capital, told CoinDesk in a Monday email. “This could fuel an end-of-year rally in ETH and its ecosystem to new record highs.”
“A price target of $10,000 in 2024 is now a reasonable goal, especially when other favorable factors, such as ETH now being deflationary, are taken into account,” Hindi added.
In May, the United States Securities and Exchange Commission (SEC) approved major regulatory filings related to ETH ETFs on Thursday, a historic milestone for the second-largest cryptocurrency.
The regulator approved documents for eight ETFs – from VanEck, Fidelity, Franklin, Grayscale, Bitwise, ARK Invest 21Shares, Invesco Galaxy and BlackRock – for listing on the Nasdaq, NYSE Arca and Cboe BZX exchanges.