The US market for spot Ethereum ETFs just experienced a notable surge, marking their most substantial daily inflow since early February and potentially heralding a shift away from recent bearish trends.
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Data indicates that the nine U.S.-listed Ethereum exchange-traded funds collectively attracted $38.74 million in net inflows on April 22. This positive movement ended a 10-day period characterized by zero or negative flows and represented the largest single-day intake since February 4, which saw an exceptional $307.77 million inflow.
This recent influx contrasts sharply with the preceding eight weeks, during which these funds saw significant capital flight totaling nearly $910 million.
Fidelity’s FETH fund led the charge, absorbing the majority of the new investment with $32.65 million. Bitwise’s ETHW product also saw respectable inflows, adding $6.09 million.
Other Ethereum ETFs recorded minimal activity, with no significant inflows reported for the day. Since their inception, these investment vehicles have gathered approximately $2.26 billion in total assets.
This uptick in ETF demand coincided with a recovery in Ethereum’s price. The value of ETH jumped over 10% on Tuesday, pushing past the $1,700 threshold for the first time since April 6. Understanding cryptocurrency trading for beginners can provide context for such market movements.
The rally appears linked to growing market optimism, potentially spurred by comments from U.S. Treasury Secretary Scott Bessent suggesting a possible easing of trade tensions with China.
Additionally, some market participants may be diversifying away from the U.S. dollar amidst ongoing criticism of Fed Chair Jerome Powell by former President Trump. This economic uncertainty, combined with Paul Atkins’ recent confirmation as SEC Chair, seems to be providing a tailwind for digital assets.
By Wednesday, Ethereum (ETH) had briefly reached the $1,800 mark, representing a gain of about 14.2% over two days. Concurrently, Bitcoin (BTC) surged past the $90,000 resistance level, peaking at $93,385 and helping lift the total crypto market capitalization back above $3 trillion. Exploring the best crypto exchange options is crucial for traders navigating these volatile conditions.
Bitcoin, which previously mirrored stock market movements, now shows signs of decoupling from traditional risk assets. Month-to-date, BTC has gained 13.6% in April, outperforming gold’s 6.7% increase, while the S&P 500 and the U.S. dollar index have both declined by roughly 5%.
Market analysts suggest these developments could set the stage for further Ethereum gains. On April 23, commentator Ash Crypto highlighted similarities between ETH’s current chart patterns and Bitcoin’s setup in late 2024, suggesting ETH looks “ready to explode.” [posted]
However, caution remains warranted. Some technical analysts argue that Ethereum needs to decisively break the $2,000 resistance level and establish a new higher high to confirm a sustainable trend reversal. Otherwise, the current bounce might prove to be a temporary rally within a larger downtrend.