Recent increase in net inflows into ETH spot ETFs noted
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Cryptoquant cited the recent surge in net inflows into Ethereum spot exchange-traded funds (ETFs) in the US as evidence of institutional demand for Ethereum. According to the report, the net inflow into Ethereum spot ETFs in the US hit a record high on the 12th.
The report stated that "institutional investors around the world have invested about $1.2 billion in new funds into Ethereum spot ETFs, which is just a few months since the launch of Ethereum spot ETFs."
Cryptoquant argued that the price of Ethereum will soon exceed $5,000 due to the principles of supply and demand. The report said, "According to the valuation metrics, if the current dynamics of supply and demand persist, the price of Ethereum could exceed $5,000," and "the influx of new investor demand is fueling the upward trend."
Cryptoquant also cited the increasing on-chain transaction activity as another reason for the potential rise in Ethereum prices. The report explained that "while the daily transaction volume on the Ethereum network was around 5 million last year, it is currently recording around 6.5 million to 7.5 million transactions per day," and "the activation of the Ethereum network means that the usage and demand for network functions have increased."
Ethereum was trading at $3,893 as of 9:30 am on the 13th, based on CoinMarketCap data.
Reporter Kwon Seung-won ksw@blockstreet.co.kr
