Ethereum's price has seen a significant uptick after a period of volatile trading. This recent spike is driven by growing excitement following the unexpected approval of the Spot Ethereum ETF by the U.S. SEC.

The regulatory approval has led to substantial inflows into Ethereum exchange-traded products worldwide, sparking debates about the longevity of this bullish trend.

ETH Enjoys Record Inflows After SEC Green Light

Last week, Ethereum saw an impressive $40 million influx into existing exchange-traded products, the largest since March. This development was highlighted by CoinShares, a leading crypto-research firm.

The surge is largely attributed to the SEC’s surprising decision on May 23 to approve Spot Ethereum ETFs for eight U.S. issuers. This decision has significantly boosted market optimism, as recent trends have shown.

However, the approval process is still underway. While the 19b-4 forms have been approved, the S1 forms are still pending review. Once finalized, these ETFs will be tradable on stock exchanges, potentially further influencing Ethereum's price.

Investor Confidence Reflects Growing Interest

This significant investment inflow indicates a growing confidence among investors. The robust inflows into U.S. Spot Bitcoin ETFs earlier this year had a similar effect, suggesting the market expects a comparable outcome for Ethereum. As the launch of the Ether ETF trading nears, investor sentiment remains positive.

Future Prospects for Ethereum's Price

The recent inflows have led to discussions about their potential impact on Ethereum’s price. Analysts are debating whether this momentum will continue or if it is a temporary reaction to the regulatory news. However, the $40 million surge points to strong market interest and belief in Ethereum’s future performance.

Some argue that the path to sustained growth may face hurdles. It’s important to remember that while the SEC’s approval process is progressing, it is not yet complete.

According to Ark CEO Cathie Wood, the recent approval for the Ethereum ETF is largely influenced by the upcoming U.S. Presidential election and the current pro-crypto sentiment, which could affect the election outcomes. Notably, the pending review of S1 forms means actual trading of these ETFs might be weeks away. This delay could impact investor sentiment and price stability in the short term.

Current Market Performance

As of now, Ethereum's price has risen by 1.45% and is trading at $3,783.37, after hitting a 24-hour high of $3,823.64. On a monthly basis, the second-largest cryptocurrency by market cap has increased nearly 25%, with a weekly gain of about 3%.

According to CoinGlass data, Ethereum Futures Open Interest grew by 1.45% to $16.70 billion, while its Options Open Interest increased by 1.63% to $6.38 billion. This rise in Open Interest also reflects a bullish sentiment in the market.

Additionally, a recent Scopescan report highlights significant activity among Ethereum whales, further supporting potential bullish momentum for ETH's price. The report notes that an Ethereum whale withdrew 4.2K ETH today, valued at $15.8 million.

Moreover, the same whale accumulated 8.3K ETH over the past three days, worth approximately $31 million. This accumulation follows the SEC's regulatory nod for the Ethereum ETF, indicating strong bullish sentiment from major investors.

In conclusion, while Ethereum’s recent price surge and the substantial inflows into its exchange-traded products suggest a strong market belief in its potential, the ongoing approval process and other factors could influence its long-term sustainability. Investors are optimistic but remain cautious as they await the finalization of the ETF approval and the subsequent market developments.