Ethereum Surges 4.1% to $2,723.98 as ETFs Surpass $4.5 Billion in Inflows

Ethereum (ETH) has regained the $2,700 threshold, marking a significant milestone in its recent price movements. This recovery comes just one day after spot exchange-traded funds (ETFs) tracking the asset surpassed $4.5 billion in cumulative net inflows on July 8. As of the latest update, Ethereum is priced at $2,723.98, reflecting a 4.1% increase over the past 24 hours. Notably, ETH had lost the $2,700 footing on June 12 and spent nearly a month below this level.

The milestone of ETFs surpassing $4.5 billion in cumulative net inflows was achieved 25 US trading sessions after the products cleared $3 billion on May 30. Issuers attracted $303 million between July 1 and July 8, with BlackRock’s ETHA leading the way with $171.8 million in inflows, followed by Fidelity’s FETH with $74.5 million.

Derivatives positioning also shifted significantly the next day. Data from Coinank shows that the Binance ETH/USDT perpetual long-to-short ratio slipped to 0.98 at 10:00 UTC on July 9, marking the first print below parity since April 16, 2023, when the same metric bottomed at 0.94. This shift indicates fresh money entering the market rather than positions closing, as rising open interest alongside a new net-short balance suggests.

Classical futures theory posits that increasing open interest combined with decisive price action confirms trend strength, while a divergence often precedes reversals. This dynamic sets a measurable backdrop as the third quarter opens, with ETFs absorbing spot supply and Binance futures showing contrasting signs.

Looking ahead, a recent report by CF Benchmarks cited four drivers that could tighten supply-demand dynamics in the coming quarter. These include the expectation of $10 billion in incremental ETF inflows as second-wave platforms launch, the potential staking enablement inside US spot ETFs projected to draw an additional $5 billion to $7 billion, the corporate treasury’s adoption which may increase the number of public ETH-holding firms from 5 to 50, and the block space demand from tokenized assets that “should lift fee burn and bolster the L1 yield profile.”

The report framed these flows as supportive after a first half marked by elevated but orderly leverage and record participation. Whether the next decisive move materializes through a long squeeze or a short cover will hinge on macro data and regulatory headlines. Still, the structural bid from regulated funds remains intact, setting a measurable backdrop as the third quarter opens.