BlackRock Ethereum ETF Hits New Milestone, $5000 ETH Price Soon?

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As a seasoned analyst with over two decades of experience in the financial markets, I have witnessed numerous trends and shifts that have shaped our industry. The recent surge in inflows into the BlackRock Ethereum ETF (ETHA) is undeniably one of the most intriguing developments I’ve encountered lately.

Since its inception, the BlackRock Ethereum ETF (ETHA) has been the main contributor to inflows in the U.S. Ether ETF market, accumulating over $2.6 billion. On Thursday alone, ETHA experienced its highest daily inflows ever at $292 million, bringing the total to over $428 million. Currently, the price of Ethereum is hovering around the $3,900 range, potentially aiming for a surge past its all-time high of $5,000 and beyond.

BlackRock Ethereum ETF Hits New Milestone

On Thursday, the BlackRock iShares Ether ETF (ETHA) saw its largest daily influx of funds since it was created, totaling approximately $292 million. In fact, over the past week, ETHA has been responsible for the majority of the overall inflows, with a staggering $800 million in investments during the last five trading days. Currently, the BlackRock Ethereum ETF manages around 837,500 Ether, which is worth approximately $3.27 billion, demonstrating its significant influence within the market.

After its debut in July, the BlackRock iShares Ethereum ETF has seen a cumulative investment of $2.6 billion, according to figures from Farside Investors. This surge suggests a rising appetite among investors for Ethereum-related financial instruments.

Yesterday’s figures marked a first as cumulative inflows across all US-based Ether Exchange Traded Funds (ETFs) surpassed $1 billion, reaching $1.3 billion. Despite encountering numerous challenges like limitations on staking capabilities, substantial outflows totaling $3.5 billion from Grayscale’s ETHE, and the absence of options trading for these Ether ETFs, Nate Geraci, President of ETF Store, notes that they have still managed to reach this significant milestone.

Spot eth ETFs now w/ over $1.3bil net inflows since July launch…

Have done this despite:

1) Nearly $3.5bil outflows from ETHE

2) No staking allowed

3) No options trading

4) No in-kind creation/redemption

5) Very limited access to major wirehouses (plus Vanguard)

Not bad.

— Nate Geraci (@NateGeraci) December 6, 2024

ETH Price Rally to $5,000 Soon?

Even though Ethereum experienced a 9% increase this week, its price is facing a significant barrier at around $3928 right now. If it manages to surpass this resistance, it could potentially aim for $5,000. Noted crypto analyst Venturefounder suggests that Ethereum might be on the verge of breaking out from a three-year long triangle consolidation pattern.

Based on the expert’s assessment, Ethereum might break free from its seven-year trading pattern, potentially leading to a swift increase similar to its intense growth spurt in the 2016-2017 era. This historical trend saw ETH reaching extraordinary peaks in a brief period. Therefore, Venturefounder anticipates that Ethereum could hit a fresh record high, aiming for $15,937 by May 2025.

The influx of funds into BlackRock’s Ethereum ETF is increasing, but at the same time, significant Ethereum holders (referred to as “whales”) are offloading their ETH as its price rises. According to the blockchain analysis platform Spot on Chain, a large Ethereum holder (a “whale”) has transferred its last 60,079 ETH, valued around $234 million, to the cryptocurrency exchange Bitfinex following a six-year period of holding onto it.

The whale originally withdrew 87,085 ETH from Bitfinex in January 2019 when Ethereum was trading at just $153, amounting to a value of $13.4 million. In 2020, the whale transferred 600 ETH to Tornado Cash for privacy purposes.

Over two strategic periods, spanning from November 2023 to December 2024, this whale transferred a grand total of 86,484 Ether to Bitfinex. The average value of each ETH was approximately $3,331.

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2024-12-06 11:34