For the first time this month, Ethereum (ETH) has reported notable spot inflows, indicating renewed investor interest in the leading altcoin.
The Chicago Board Options Exchange (CBOE) has submitted a proposal to the US Securities and Exchange Commission (SEC) on behalf of 21Shares for a spot-staked Ethereum exchange-traded fund (ETF). This development reflects a surge in positive sentiment towards Ethereum, which could signal the beginning of an upward price trend.
On February 12, CBOE filed with the SEC to list a spot-staked Ethereum ETF on behalf of 21Shares. The proposed ETF is designed to allow staking of Ethereum holdings, offering investors the potential to earn passive income in addition to holding the asset.
Staking involves locking ETH to help secure the Ethereum network, rewarding participants with returns. This method offers investors additional yield opportunities compared to conventional ETH ETFs.
James Seyffart, an ETF analyst with Bloomberg, commented on the application in a social media post, noting its potential approval. Nevertheless, he expressed caution due to the complexities of regulatory decisions. "Assuming this is acknowledged by the SEC—we might assume so, but you never know. The deadline for this decision should be around the end of October, possibly October 30th," Seyffart wrote.
Following these developments, Ethereum prices rose by 12%. The altcoin hit an intraday high of $2,790 from a low of $2,565, with spot inflows amounting to $11.87 million according to Coinglass. This marks the first recorded spot inflows for Ethereum since early February.
Spot inflows for an asset indicate increased purchases and holdings in the spot market, often reflecting a rise in investor demand. The trend suggests a preference for acquiring the asset directly rather than through derivatives.
Sentiment towards Ethereum has shifted notably. Santiment's data reveals ETH's weighted sentiment is positive at 0.27, the first positive reading since February 5. Weighted sentiment evaluates overall bias, considering both the volume and sentiment of social media discussions. A positive sentiment is a bullish sign, indicating growing optimism and increased trading activity, which can drive up asset value.
A steady increase in demand could extend Ethereum's current rally. Currently trading at $2,681, Ethereum has seen a 4% increase over the past 24 hours.
If positive sentiment and spot inflows persist, ETH's price may rise toward $2,811, with potential to reach $3,321 if it surpasses this level. However, if profit-taking resumes among ETH holders, prices could fall below $2,500.
Disclaimer: The information provided in this article is for educational purposes only and should not be considered financial or legal advice. Always conduct your own research or consult a professional when dealing with cryptocurrency assets.