Ether Investment Products See 296 Million Inflow Amid Fed Uncertainty

Ether-based investment products saw a substantial inflow of $296 million last week, marking the highest weekly inflow since the 2024 election of US President Donald Trump. This surge in interest highlights a renewed confidence in Ether, despite an overall slowdown in market activity as investors await clarity from the US Federal Reserve.

This inflow represents the seventh consecutive week of positive inflows for Ether ETPs, indicating a significant recovery in investor sentiment. Ether-based investment products now account for over 10.5% of the total assets under management (AUM) of all crypto-based ETPs. This shift in investor preference towards Ether can be attributed to several factors, including anticipated network upgrades and the potential approval of Ether ETFs, which could further boost investor confidence.

Analysts have offered varying perspectives on the future price movements of Ether. Ryan Lee, chief analyst at Bitget Research, predicts that Ether is likely to trade within the range of $2,400 to $2,800. He suggests that trade tensions and deflationary pressures may limit gains, but network upgrades and ETF inflows could support a push towards $2,700. However, a broader market sell-off could test the $2,300 support level.

Across all digital asset investment products, weekly inflows reached $286 million, pushing the seven-week total to over $11 billion. However, Bitcoin funds saw $56 million in outflows, marking the second straight week of net losses. This deceleration in Bitcoin inflows is attributed to investor caution ahead of the Federal Open Market Committee’s (FOMC) next interest rate decision on June 18. Investors have adopted a "wait-and-see" stance as they await further signals from the US Federal Reserve on inflation.

Market participants are currently pricing in a 99.9% chance that the Fed will keep interest rates steady during the next FOMC meeting. The first interest rate cut of the year could potentially serve as the next catalyst for the Bitcoin price, according to Alice Li, investment partner and head of US at crypto venture capital firm Foresight Ventures. Li expressed optimism about the future of Bitcoin, predicting that it could reach at least $150,000 in the current market cycle.

Meanwhile, crypto venture capital deals have slowed, with only 62 investment rounds in May, marking the lowest monthly count of 2025. This resulted in $909 million raised for the industry, reflecting a cautious approach by investors in the current market environment.