Ether ETFs See $393 Million Inflow Amid Bitcoin Outflows, Pectra Upgrade Anticipated

Ether ETFs Experience Surge in Capital Inflows

Ether (ETH) exchange-traded funds (ETFs) in the U.S. saw a substantial capital influx, with a net inflow of $393 million in the past month. This surge contrasts sharply with Bitcoin (BTC) ETFs, which experienced a net outflow of $376 million over the same period.

ETF Performance and Price Stability

The nine U.S.-listed Ether spot ETFs recorded inflows seven times higher than in January, with outflows occurring on only two trading days. Conversely, the 11 Bitcoin ETFs saw inflows on just four days, reflecting weaker investor sentiment. Despite this shift, Ether's price has remained stable between $2,600 and $2,800, while Bitcoin has stayed below $100,000, with both experiencing volatility, particularly in the memecoin sector.

Strategic Investing and Upcoming Upgrades

The inflow into Ether ETFs is attributed to carry trading strategies, where investors buy spot ETFs and short ETH CME futures, potentially indicating bullish sentiment. The upcoming Pectra upgrade on April 8 is expected to enhance Ethereum's performance by optimizing its execution and consensus layers, maintaining its competitive edge against blockchains like Solana.

Expert Optimism and Institutional Investment

Nick Forster, founder of Derive.xyz, expressed optimism for Ether's prospects due to the Pectra upgrade and Ethereum founder Vitalik Buterin's push for a tenfold increase in the Layer 1 gas limit. This could improve application development and security. Additionally, the Ethereum Foundation's $120 million investment in DeFi projects, including ETHrealize, signals growing institutional interest.

Forster predicts a 30% chance of Ether reaching $3,000 by the end of the quarter, up from 28% last week, highlighting a positive outlook for Ether's price trajectory.