Ethereum (ETH) is poised for a significant upside after the recent approval of United States Ether exchange-traded funds (ETFs), according to a Deribit Insights report. The report suggests that the strong support witnessed through July indicates high buyer demand, potentially setting the path for highs of $4,500.
The approval of Ethereum ETFs has made the underlying crypto asset more accessible and regulated, generating positive market sentiment as analysts predict further substantial inflows. The introduction of Ether ETFs is expected to drive increased institutional attention and investment, with Deribit highlighting that the regulatory green light is expected to boost institutional interest.
The data from Nansen shows that almost $750 million in outflows from the Ether ETFs in four of five recorded trading days, with Bitwise temporarily surpassing BlackRock in the total trading volume of the Ether ETFs on July 30. However, BlackRock’s holdings now account for 6.9% of assets under management (AUM), up from 5.59%.
The report also notes that unlike the launch of Bitcoin (BTC) ETFs, the price of ETH did not receive equivalent inflows, which is suspected to be the result of the US Securities and Exchange Commission (SEC) not approving staking. The Ethereum network total value locked (TVL) of 17.8 million remains unchanged, suggesting a lack of continued ecosystem growth.
Despite this, the report suggests that the strong support witnessed through July indicates high buyer demand, potentially setting the path for highs of $4,500. The approval of Ethereum ETFs has made the underlying crypto asset more accessible and regulated, generating positive market sentiment as analysts predict further substantial inflows.
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Source: Cointelegraph
