- Ethereum’s bullish sentiment is driven by potential ETF approval and significant netflows from Coinbase.
- Institutional investors show strong interest, with over $400M ETH purchased on three days in 2024, hinting at ETF anticipation.
- Prominent financial firms, including Fidelity and VanEck, have filed for Ethereum ETFs, aligning with large ETH netflows.
Ethereum is experiencing its most bullish sentiment since September, fueled by the anticipation of the SEC’s likely approval of the first Ethereum ETFs and a surge in ETH prices. According to Santiment, a top analytic firm, Bitcoin and Solana are facing slightly bearish sentiment, suggesting potential opportunities for overlooked assets.
As per CryptoQuant, an analytic firm, substantial Ethereum netflows from Coinbase have raised questions about their connection to the potential ETF approval. In 2024, Coinbase recorded significant Ethereum netflows on three different days, amounting to 134,000, 120,000, and 132,000 ETH. This pattern echoes the large Bitcoin netflows observed before the approval of Bitcoin Spot ETFs.
While these netflows alone do not confirm the link to Ethereum Spot ETF approval, the similarities warrant attention. Large netflows, especially before major regulatory decisions, often hint at strategic moves by investors anticipating positive outcomes.
Examining the data from all exchanges, a noticeable divergence between Coinbase and other platforms emerges. This suggests that US investors’ interest in Ethereum has increased compared to global trends.
The substantial purchases, totaling over $400 million on three occasions in 2024, point to institutional involvement rather than individual actions. Such large-scale acquisitions imply confidence in Ethereum’s future, likely tied to the upcoming ETF decision.
The recent wave of filings by prominent financial institutions further bolsters this speculation. As further noted by James Seyffart, Bloomberg ETF analyst, Fidelity, VanEck, Invesco/Galaxy, Ark/21Shares, and Franklin have all submitted their amended 19b-4 forms via the CBOE.
This flurry of activity indicates strong institutional interest and preparation for a favorable SEC decision. The alignment of these filings with significant Ethereum netflows suggests coordinated efforts by unnamed institutions to secure large positions ahead of the ETF approval.
Moreover, Ethereum’s price has reacted positively to these developments. Trading at $3,759.03 with a 24-hour trading volume of $33.5 billion, Ethereum has risen by 3.31% in the last 24 hours.
