Find out why Ethereum has not reacted enthusiastically to the ETF launch and what this means for investors. Ethereum’s ETF debut wasn’t exactly explosive, but the indicators point to a potential reversal in the coming days.
With over $ 112 billion trading volume and high investor interest, Ethereum’s price didn’t increase with the hype. The overall net inflow was $106 million, and there were significant investments in ETFs such as Bitwise’s ETHW of $204 million and BlackRock’s ETHA of $266.5 million.
However, bearish pressure remained robust as investors made a $590 million net purchase after redemption from Grayscale’s ETHE.
Several factors contributed to the price shift, one being what appears to be a buy-the-rumor, sell-the-news event due to the massive excitement surrounding Ethereum ETF.
ETH holders presumably sold their coins to speculate on the ETF release after they bought them beforehand. On the other hand, while institutions were attracted to the ETF introduction, it highlighted a problem of too few new retail investors in the market.
Keeping bullish momentum in crypto markets: institutional and retail investors
The market sentiment remains bearish due to the lack of engagement by active retail investors, even with waves of institutional investors.
A bullish trend requires a mix of institutional demand and overall crypto retail demand, the latter of which is influenced by the performance of the rest of the crypto markets.
This was similar to what happened to Bitcoin before it surged to nearly $70,000 due to large inflows. The same could happen to Ethereum if institutional investors were to start dumping their coins, with market liquidity being expected to act as a shock absorber.
