The approval of Bitcoin and Ethereum ETFs earlier this year marked significant milestones in institutional liquidity. While Bitcoin has been dominant in terms of funds flowing in, Ethereum’s ETFs recently surpassed Bitcoin in daily inflows for the first time.
Latest data indicates that Ethereum ETF inflows hit a peak of $332.9 million on Friday, outshining Bitcoin’s $320 million in inflows on the same day. This milestone is noteworthy as it marks the first time Ethereum ETFs have attracted more inflows compared to Bitcoin ETFs.
Friday also saw the highest single-day inflows, surpassing all previous records for November and the entire history of Ethereum ETF trading.
Could Ethereum Experience a Significant Price Surge?
The recent trend of Ethereum ETFs outperforming Bitcoin ETFs in daily inflows may indicate a potential rally for ETH. Bitcoin’s diminishing dominance could be a contributing factor to Ethereum’s increasing investor interest, along with other factors.
ETH has recently gained significant bullish momentum, breaking out from a long-term wedge pattern and forming a bullish flag. These technical indicators suggest a possible bullish trend for Ethereum in December.
As of now, Ethereum is valued at $3,694, and continued demand following a breakout from the descending resistance line may signify growing bullish sentiment among investors.
Furthermore, several other indicators support these findings. For instance, ETH’s Open Interest reached a record high of $24.08 billion on 28 November, marking its peak level to date.
The surge in Open Interest confirms strong demand for ETH derivatives alongside ETFs. Additionally, data on Exchange Reserves reflects a rising confidence among ETH holders, with reserves increasing by approximately 750,000 coins in the past month, totaling around 19.72 million ETH on exchanges.
Ethereum’s Exchange Reserves are currently at levels not seen since April 2024, marking two consecutive months of positive exchange reserves for the first time this year. This shift in sentiment among ETH holders may suggest a decrease in selling pressure, potentially driving ETH prices above $4,000 and beyond in the near future.