ETH Futures Advise Caution Even As ETF Flows Soar
Ether (ETH) price declined by 4% over the past week, contrasting with a 1% increase in the broader cryptocurrency market. Demand for leveraged bullish bets on ETH has decreased, despite Bitcoin (BTC) trading close to its all-time high. Ether ETFs saw $322 million in inflows following a rejection at the $2,800 level, indicating traders anticipate potential improvements in ETF utility. The SEC is reviewing requests for “in-kind” ETF operations and staking capabilities, with a decision expected by late August. Weak demand for ETH leverage suggests investors may prefer altcoin ETFs, with a high likelihood of approval for Solana, Litecoin, Polkadot, and XRP by 2025. Current ETH options metrics show neutral sentiment, with no strong demand for hedging against price corrections. Ether supporters argue Ethereum's architecture and liquidity position it well for institutional inflows, but ETH remains significantly below its all-time high, limiting bullish sentiment in the near term.
