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Ethereum Exchange Inflows Near $400 Million in 3 Days: Do Traders Expect ETF Approval?

Last Updated May 22, 2024 2:42 PM
Eddie Mitchell
Last Updated May 22, 2024 2:42 PM
Key Takeaways
  • Exchanges have recorded inflows of over 100,000 ETH since the beginning of the week.
  • Ethereum has added around $90 billion to its market cap since May 15, 2024.
  • The U.S. could approve spot Ethereum ETFs by the end of this week on May 23, 2024.

There is a significant buzz around Ethereum as almost $400 million worth of tokens have flooded into crypto exchanges since the beginning of the week.

With the decision to approve spot Ethereum exchange-traded funds (ETFs) looming in the U.S., investors are eager to keep the rally going in anticipation of a thumbs-up from the Securities and Exchange Commission (SEC).

Ethereum Inflows

Data from Nansen  shows that 106,696 ETH tokens totalling some $398 million at today’s prices, have poured into exchanges since May 20, 2024.

(Source: Nansen)

Ethereum’s price has climbed over 25%  in the last 7 days from just under $2,900 to $3,693 at the time of writing. A great deal of this rally is attributed to the anticipation of  U.S. spot Ethereum exchange-traded funds (ETF) being approved.

The U.S. Securities and Exchange Commission (SEC) has a deadline of May 23, 2024, to make a decision on spot ETH ETFs, sparking very bullish discussion.

Investors in Position

The news of a potential Ethereum ETF approval appears to be driving up investor activity around ETH.

It would seem to suggest that exchanges and investors are preparing for a price increase, though only if it is. As many traders will recall, the spot Bitcoin ETF approval launched BTC from $46,000 to $69,000 within just two months.

Overall, it appears as though the entire market is optimistically preparing for the approval of spot ETH ETFs,

Institutional Ethereum

Hong Kong was the first in Asia to launch spot ETH ETFs, and though they have had a mixed response since launching on April 30, 2024, recent inflow activity suggests investors are preparing for its approval.

In addition, the UK’s hawkish Financial Conduct Authority (FCA) seemingly reversed a crypto derivatives ban, and approved Bitcoin and Ethereum exchange-traded products (ETPs) to be traded on the London Stock Exchange (LSE).

Should a spot ETH ETF be approved in the states, it’s reasonable to expect yet another surge in market activity, and perhaps a significant price bump too.

With the likes of Ripple (XRP) also eyeing an ETF launch, Ethereum’s ascent to U.S. ETF markets may prove transformative for the legitimacy of altcoins, especially in the U.S.

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