Ethereum News Today: Ethereum Surges 8.9% to $3,452 on Record ETF Inflows

Ethereum, the second-largest cryptocurrency, experienced a significant surge, rising 8.9% overnight to reach $3,452, marking its highest level since mid-January. This rally was primarily driven by record inflows into spot Ethereum exchange-traded funds (ETFs), which have attracted substantial institutional interest.

Net inflows into nine US spot Ethereum ETFs totaled $726.74 million on July 16, with BlackRock’s ETHA leading the way by accounting for $499 million of the total. Since the beginning of July, spot ETH ETFs have attracted $2.27 billion in net inflows, setting a one-month record since their launch. This influx of capital signals ongoing robust investor demand for Ethereum.

Analysts believe that Ethereum is increasingly being viewed as a long-term institutional asset rather than just a speculative instrument. Funds already own 4% of the altcoin’s total capitalization, indicating a rapid influx of capital from major players. The growing number of public companies investing in Ethereum as a reserve asset is contributing to market stability and enhancing its reputation as a reliable component in diversified digital asset portfolios.

ConsenSys-backed firm SharpLink Gaming became the largest corporate holder of ETH with approximately 280,600 ETH, overtaking the Ethereum Foundation. This shift highlights the increasing institutional adoption of Ethereum.

Amid Ethereum’s surge, other altcoins also gained: XRP rose 7.8%, Solana climbed 5.7%, and BNB increased by 4.2%. Bitcoin, however, added only 0.2% over the same period. The Bitcoin dominance index dropped by 2.59% over the week, down to 62.62%. A decline in this metric has historically preceded an “altcoin season,” suggesting that Ethereum’s rise may be part of a broader trend in the altcoin market.

The rise in Ethereum’s price triggered forced liquidations of short positions totaling $177.67 million. These positions accounted for the majority of the $227.74 million in total crypto market liquidations over the past 24 hours. Losses for Bitcoin short sellers in the same period were just $45.33 million, indicating that Ethereum’s price movements are having a more significant impact on the market.

Ethereum’s daily trading volume grew by 28% to $161 billion, surpassing that of Bitcoin ($109 billion). Open interest in Ethereum derivatives increased by 7%. The financing rate remains neutral, indicating the emergence of new positions without signs of excessive leverage. This suggests that the market is stable and that new investors are entering the market without taking on excessive risk.

The recent surge in Ethereum's price can be attributed to several factors, including the record inflows into ETFs and the increasing institutional adoption of the cryptocurrency. The total holdings in Ethereum ETFs have reached 5 million ETH, which represents approximately 4% of the total supply. This significant increase in ETF holdings has been a key factor in boosting the price of Ethereum.

The record inflows into Ethereum ETFs have been driven by a combination of factors, including the growing interest from institutional investors and corporate treasuries. The total assets managed by these ETFs now stand at $16 billion, with cumulative net inflows exceeding $6 billion since their launch. This trend indicates a growing confidence in Ethereum as a viable investment option, particularly among institutional investors.