Key Points
- Ethereum investment inflows reached $85 million, with its price surpassing $3,600 and potentially reaching $4,000 soon.
- Bitcoin dominated the inflows, accounting for 94% of the total, as per a CoinShares report.
Investment inflows connected to Ethereum soared to $85 million recently. Concurrently, the price of ETH went beyond $3,600 and is predicted to reach $4,000 in the near term.
Digital Asset Investment
The previous week saw digital asset investment products recording an overall inflow of $1.84 billion. During this period, which concluded on March 1st, Ethereum witnessed its highest inflow since July 2022.
CoinShares’ report revealed that the total trading volume hit $30 billion, demonstrating a strong interest in cryptocurrency-related products. However, Bitcoin overwhelmingly led the inflows, representing 94% of the total.
Bitcoin and Ethereum Inflows
Inflows into short Bitcoin positions also increased, suggesting a bearish sentiment among some investors. Ethereum, on the other hand, saw its total inflows around $85 million. This significant increase indicates that investors are seeking exposure to ETH as the deadline for approving spot Ethereum ETFs approaches.
Despite the inflows, the Assets under Management (AuM) for Ethereum fell short of its all-time high. The AuM reached $14.6 billion, still significantly lower than the peak of $23.7 billion. This indicates that the value of Ethereum funds held by institutions is still trailing.
If the U.S. SEC approves the Ethereum ETFs, this scenario may change, and the total AuM value could potentially increase. However, there are speculations that the SEC might delay the applications.
Ethereum’s Price Action
Ethereum’s value has been on an upward trajectory. At the time of writing, ETH was trading at $3,696, marking a 14.66% increase over the past week.
On-chain data indicates that the volume has also been rising. Currently, Ethereum’s volume stands at 31.69 billion. If this trend continues, Ethereum’s price could potentially increase in the short term, potentially crossing the $4,000 mark within weeks.
Despite the bullish sentiment, traders should remain cautious. If Ethereum’s price falls below $3,500, the bullish outlook could be invalidated.
It’s worth noting that the total AuM reached $82.6bn, only slightly below the peak of $86bn in early November 2021. If inflows continue their upward trend as seen since the start of the year, the AuM could potentially exceed the 2021 high.
Altcoin Flows
Other altcoins also saw inflows and outflows. While Polygon registered more inflows, Solana experienced high outflows. Polygon saw inflows of $7.6 million, representing 22% of AuM, while Solana saw outflows of $12 million.
