ETH Surges Past $3,300 Amid Record ETF Inflows

Ethereum experienced significant gains in the 24 hours leading up to Thursday morning, driven by a surge in institutional demand. As of now, Ether has risen by 7.4% to $3,342 after hitting a local peak of $3,416, marking its highest price point since mid-January. The price increase coincided with a record daily net inflow of $726.74 million into nine Ethereum exchange-traded funds (ETFs). The inflows were primarily led by BlackRock's ETHA, with eight of the nine funds reporting positive flows, according to SoSoValue data. In July alone, ETH ETFs attracted a total of $2.27 billion in net inflows, the highest since their launch in July 2024. Rachael Lucas, a crypto analyst at BTC Markets, noted that Ethereum is increasingly viewed as a long-term institutional asset rather than just a trading vehicle. The fact that these funds collectively hold 4% of Ether's total market cap highlights the swift influx of institutional capital. Lucas added, "Combining over $2.5 billion in daily trading volume with positive chart patterns and a shift in capital from Bitcoin contributes to this breakout driven by both fundamentals and sentiment." According to Nick Ruck, Director at LVRG Research, Ether's momentum is further supported by increasing investments from public companies in the cryptocurrency as a treasury asset. SharpLink Gaming, a firm backed by Consensys, recently became the largest holder with 280,706 ETH, surpassing the Ethereum Foundation's holdings, having acquired an additional 20,279 ETH on a recent Wednesday. As demand for ETH rises, traders consider the digital asset undervalued, supported by strong fundamentals and limited future supply growth. Ruck is optimistic about ETH continuing to rise, aiming for a new all-time high above $4,600. Other altcoins also performed well, with XRP rising 5% to $3.05, Solana gaining 5.16% to $170.96, and BNB up 3.44% to $710. Bitcoin's gains were modest at 0.71%, trading at $118,395, while its dominance declined by 2.59% over the past week to 63.09%. "Bitcoin's dominance is decreasing, which historically signals the onset of altcoin season," Lucas noted. The combination of tightening supply through staking, institutional buying, and favorable macro conditions sets the stage for a strong altcoin cycle. Disclaimer: The Block is an independent media outlet providing news, research, and data. As of November 2023, Foresight Ventures is a major investor in The Block. Crypto exchange Bitget is also a key partner for Foresight Ventures. The Block remains committed to delivering objective and timely information about the crypto industry. This article is for informational purposes only and is not intended as legal, tax, investment, or financial advice.