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Interest in Bitcoin ETFs Decreases While Ethereum ETFs Rise! Bullish Signal? Here are the Details
According to Farside Investors' data, investors are turning to Ethereum (ETH) exchange-traded funds (ETFs ), and spot ETH ETFs listed in the US recorded a total net inflow of 393 million dollars this month.
As Investors Shift Focus Away from Bitcoin, Ethereum ETFs See Influx of 393 Million Dollars
This indicates a sevenfold increase compared to January and reflects the increasing bullish sentiment around Ethereum.
By the way, Bitcoin ETFs, which currently have a net outflow of 376 million dollars this month, have experienced a complete contrast. Market data shows that BTC ETFs saw inflows in just four trading days compared to ETH ETFs, which faced outflows in only two days.
Ethereum's Pectra Upgrade Increased Bullish Sentiment
Analysts attribute this change to the Pectra upgrade planned for Ethereum on April 8, which aims to increase transaction speed, staking mechanics, and overall network efficiency.
Nick Forster, founder of the decentralized options platform Derive.xyz, said, “ETH has a strong foundation for revival.” He pointed to Ethereum co-founder Vitalik Buterin’s efforts to increase Layer 1 gas limits by 10x, which could enhance application development and security.
Additionally, the Ethereum Foundation's $120 million investment in DeFi projects points to increasing institutional interest, especially through the initiative ETHrealize, managed by Vivek Raman, aiming to integrate traditional finance with Ethereum.
Market Outlook: Will ETH Exceed 3,000 Dollars?
Despite increasing ETF inflows, the price of ETH has fluctuated between $2,600 and $2,800 since dropping to $2,000 on some exchanges on February 3rd.
However, with Forster stating that the probability of ETH surpassing $3,000 by the end of the 1st quarter increased from 28% last week to 30%, traders are placing more bets on a rally.
With the rise of Pectra, the expansion of DeFi, and the acceleration of institutional adoption, investors are turning to ETH ETFs as a significant strategic play in the evolving crypto space.