Ether ETFs see $393M in inflows as traders pivot from Bitcoin
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Ether EFTs attract strong inflows
Despite a sharp early-month drop to $2,000, Ether ETFs have recorded $393 million in net inflows this month, according to farside investors. This figure is seven times larger than january’s inflows, showing a notable shift in investor sentiment toward eth. In contrast, Bitcoin ETFs have suffered $376 million in outflows, with inflows recorded on just four trading days.
Carry trades and directional bets driving ETF demand
The pivot to ETH is largely driven by carry trading, where traders buy spot ETFs while shorting ETH CME futures. however, some inflows also reflect outright bullish positions, anticipating a future price breakout. Despite the strong demand, ETH prices remain range-bound between $2,600 and $2,800 since the february 3 crash.
Pectra upgrade could be a catalyst
Optimism is building around Ethereum’s upcoming Pectra upgrade, scheduled for april 8th, which aims to enhance network execution, transaction speed, and staking mechanics. Ethereum founder Vitalik Buterin’s push for a 10x gas limit increase could further improve security and application development, while the ETH foundation’s recent $120 million investment in defi projects signals growing institutional interest.
Trading outlook
With traders positioning ahead of Ethereum’s network upgrade, options markets are now pricing a 30% probability that ETH will surpass $3,000 by the end of q1, up from 28% last week. Key resistance sits at $2,900-$3,000, with a breakout potentially leading to a retest of $3,200-$3,500. support remains firm at $2,500-$2,600, where dip-buying has emerged in recent weeks.
Despite a sharp early-month drop to $2,000, Ether ETFs have recorded $393 million in net inflows this month, according to farside investors. This figure is seven times larger than january’s inflows, showing a notable shift in investor sentiment toward eth. In contrast, Bitcoin ETFs have suffered $376 million in outflows, with inflows recorded on just four trading days.
Carry trades and directional bets driving ETF demand
The pivot to ETH is largely driven by carry trading, where traders buy spot ETFs while shorting ETH CME futures. however, some inflows also reflect outright bullish positions, anticipating a future price breakout. Despite the strong demand, ETH prices remain range-bound between $2,600 and $2,800 since the february 3 crash.
Pectra upgrade could be a catalyst
Optimism is building around Ethereum’s upcoming Pectra upgrade, scheduled for april 8th, which aims to enhance network execution, transaction speed, and staking mechanics. Ethereum founder Vitalik Buterin’s push for a 10x gas limit increase could further improve security and application development, while the ETH foundation’s recent $120 million investment in defi projects signals growing institutional interest.
Trading outlook
With traders positioning ahead of Ethereum’s network upgrade, options markets are now pricing a 30% probability that ETH will surpass $3,000 by the end of q1, up from 28% last week. Key resistance sits at $2,900-$3,000, with a breakout potentially leading to a retest of $3,200-$3,500. support remains firm at $2,500-$2,600, where dip-buying has emerged in recent weeks.