Why Ethereum Price Could Recover Amidst Institutional Demand?

• Ethereum ETFs saw inflows of $130.8 million on Monday, even as Bitcoin ETFs continued their streak of outflows.
• Research by IntoTheBlock shows that Ethereum ETF inflows accelerated in December, marking 74% of total inflows since the beginning.
• Ethereum is hovering around $3,400, showing signs of recovery on the weekly price chart.

Ethereum Spot ETFs hit a key milestone on Monday when the product saw inflows, while Spot Bitcoin ETFs saw another outflow, extending a streak of declines in institutional demand.

Data from Farside Investors showed that on Monday, $130.8 million of institutional capital flowed into Ethereum ETFs, while investors pulled $226.5 million from Spot Bitcoin ETFs. For Bitcoin, this is the third outflow, amid a decline in the token’s price.

Ethereum ETFs benefit as Bitcoin struggles in December

Ethereum (ETH) ETFs have benefited from a number of positive developments over the past few weeks. As traders wait for approval to transfer the benefit of holdings to Ether ETFs, the US Securities and Exchange Commission (SEC) has approved the first Bitcoin-Ethereum ETF, paving the way for further institutional capital inflows into the altcoin.

Research by IntoTheBlock shows that ETF inflows increased in December. ETF providers have recorded $1.66 billion in new investments since December 23rd. This represents 74% of the $2.24 billion in inflows since the inception of Ethereum ETFs.

The biggest gainer was BlackRock’s iShares Ethereum Trust with inflows reaching a one-day high of $292 million on December 5. Another popular choice is Fidelity’s FETH, and other providers have modest inflow ranges.

Spot Ethereum ETF flows

Meanwhile, Bitcoin is facing a volatile holiday season with Q4 gains capped at close to 53% and the price hovering over 10% below its all-time high of $108,353.

Ethereum vs. Bitcoin: Price Performance and Expectations

Derivatives traders are bullish on Bitcoin and Ethereum gains, according to data from Coinglass. As of Tuesday, the long/short ratio is greater than one for most derivatives exchanges and both assets.

The weekly price charts of both Bitcoin and Ethereum show signs of recovery in the token’s prices after the recent cryptocurrency correction. While Ethereum hovers around $3,400 on December 24, Bitcoin is rising towards resistance at $99,000, closer to the token’s $100,000 milestone.