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The cryptocurrency market witnessed a remarkable week, with the total market capitalization surging to a record high of $69 million. This surge was primarily driven by the upcoming launch of several cryptocurrency exchange-traded funds (ETFs).
ETF Launch Anticipation:
The launch of cryptocurrency ETFs has been highly anticipated by investors, as it provides a more accessible and regulated way to participate in the digital asset market. The first Bitcoin ETF is expected to launch in the US on October 19th, followed by a number of other ETFs in the coming months.
Institutional Interest:
The anticipation of ETF launches has attracted significant institutional interest in the cryptocurrency market. Institutional investors, such as hedge funds and pension funds, are seeking exposure to cryptocurrencies through regulated products like ETFs. This increased interest is further fueling the market rally.
Ethereum Rally:
Ethereum (ETH), the second-largest cryptocurrency, has also contributed to the market’s surge. ETH has broken above $4,000 and is approaching its all-time high. This rally is driven by anticipation of the Ethereum 2.0 upgrade, which is expected to improve the network’s scalability and efficiency.
Stablecoin Adoption:
Stablecoins, digital assets pegged to fiat currencies, have also played a role in the market’s growth. Stablecoins provide a bridge between the traditional financial system and the cryptocurrency market, making it easier for investors to convert between fiat and crypto.
What’s Next?
The launch of cryptocurrency ETFs is expected to further bolster the market’s growth by attracting a wider range of investors. As more institutions enter the space, demand for cryptocurrencies is likely to increase, potentially driving prices higher. However, it’s important to note that the cryptocurrency market remains volatile and subject to risks. Investors should conduct thorough research and invest only what they can afford to lose.After the recent price spike that brought Ethereum (ETH) close to the $4,000 mark, the second-largest cryptocurrency has experienced inflows and renewed market enthusiasm. This comes in response to the US Securities and Exchange Commission (SEC) approving Ethereum ETF applications by major asset managers.After the recent price spike that brought Ethereum (ETH) close to the $4,000 mark, the second-largest cryptocurrency has experienced inflows and renewed market enthusiasm. This comes in response to the US Securities and Exchange Commission (SEC) approving Ethereum ETF applications by major asset managers. ## Best week for Ethereum since March According to a report by CoinShares, digital asset investment products have witnessed inflows totaling $2 billion, contributing to a five-week streak of inflows of $4.3 billion. Moreover, trading volumes in exchange-traded products (ETPs) rose to $12.8 billion this week, up 55% from the previous week. It is striking that an influx has been observed at various providers, which indicates a change in sentiment. Established providers have also experienced a slowdown in outflows, reinforcing positive market sentiment.
ETH and BTC inflows have been recorded over the past week. Source: CoinShares As seen in the image above, Bitcoin (BTC) continues to dominate the market, with inflows totaling $1.97 billion for the week. On the other hand, short Bitcoin products saw outflows of $5.3 million for the third week in a row. Similarly, Ethereum has also seen a remarkable rise inflow the best week since March with a total of $69 million, which for CoinShares is likely a response to the SEC’s unexpected decision to allow spot-based ETFs on Ethereum. ## Different perspectives on the price of ETH Despite the positive developments, Ethereum’s price has struggled to maintain bullish momentum, failing to retest March’s yearly high of $4,100. On Friday, the price fell to $3,577. However, the number of Ethereum addresses holding more than 10,000 ETH has increased by 3% over the past three weeks, indicating a significant spike in purchasing pressure.
