Ethereum Price Falls as Spot ETFs See Inflows
The post Ethereum Price Falls as Spot ETFs See Inflows appeared on BitcoinEthereumNews.com.
Ethereum price drops, but strong ETF inflows indicate continued investor confidence, while Bitcoin faces outflows and challenges. Ethereum price has fallen recently, despite strong inflows into Ethereum spot ETFs. According to data from Spot On Chain, the week of December 23-27, 2024, saw interesting trends in cryptocurrency ETFs. Both Bitcoin and Ethereum ETFs saw inflows, while Bitcoin ETFs saw outflows. This period was no good for bitcoin ETFs. Money exited Bitcoin ETFs on three out of the four trading days. Specifically, BlackRock’s IBIT ETF experienced the largest outflow since launch. It poured about $188.7 million out of the country. This is a concerning sign for Bitcoin in the short term. But this could also be indicative of a broader market trend, rather than fundamental weakness with Bitcoin itself. On the other hand, Ethereum ETFs increased. On the four trading days of the week, Ethereum’s ETFs recorded inflows. In fact, on three of those days there were no outflows at all. Despite the drop in Ethereum’s price, there is strong demand for Ethereum based investment products. Ethereum Price Drops 20%, But Strong ETFs Performance Signals Hope Ethereum’s price on December 29, 2024, was $3,363.36. This is considerably lower than its highest price earlier this month, more than 20%. This is even as Ethereum ETFs have been performing positively. It can be assumed that this decline in price is caused by market corrections. Ethereum’s fundamentals are still solid, however, and investor confidence remains high. Furthermore, even if the price of Ethereum falls, it’s market position is strong. Furthermore, Ethereum remains an important part of smart contracts, decentralized finance (DeFi) and blockchain innovation. This coupled with these factors has continued to entice long term investors. The price may be temporary, but Ethereum has more potential. Meanwhile, investor sentiment might be shifting on the…
Filed under: News - @ December 30, 2024 6:27 pm