Ethereum (ETH) reclaimed the $2,700 threshold one day after spot exchange-traded funds (ETFs) listed in the US tracking the asset surpassed $4.5 billion in cumulative net inflows on July 8, according to Farside Investors’ data.
As of press time, Ethereum is priced at $2,723.98, up by 4.1% in the past 24 hours. ETH lost the $2,700 footing on June 12, spending almost a month below it.
Notably, the milestone of the ETFs came 25 US trading sessions after the products cleared $3 billion on May 30.
Issuers attracted $303 million between July 1 and July 8. BlackRock’s ETHA led with $171,8 million in the period, followed by the $74.5 million in inflows from Fidelity’s FETH.
Shifting derivatives
Derivatives positioning shifted the next day. Coinank data show the Binance ETH/USDT perpetual long-to-short ratio slipped to 0.98 at 10:00 UTC on July 9, the first print below parity since April 16, 2023, when the same metric bottomed at 0.94.
Rising open interest alongside a new net-short balance implies fresh money entering the market rather than positions closing.
Classical futures theory holds that increasing open interest combined with decisive price action confirms trend strength, while a divergence often precedes reversals.
Q3 catalysts
A recent report by CF Benchmarks cited four drivers that could tighten supply-demand dynamics in the coming quarter.
The first is the expectation of $10 billion in incremental ETF inflows as second-wave platforms launch. At the same time, the second is the potential staking enablement inside US spot ETFs, projected to draw an additional $5 billion to $7 billion.
The report identified a third catalyst as the corporate treasury’s adoption, which may increase the number of public ETH-holding firms from 5 to 50. Wrapping up the catalysts is the block space demand from tokenized assets that “should lift fee burn and bolster the L1 yield profile.”
The report framed these flows as supportive after a first half marked by elevated but orderly leverage and record CME participation.
Price discovery enters tight window
With ETFs absorbing spot supply and Binance futures showing contrasting signs, traders face a confluence that tends to accelerate price discovery.
Whether the next decisive move materializes through a long squeeze or a short cover will hinge on macro data and regulatory headlines. Still, the structural bid from regulated funds remains intact.
The juxtaposition of persistent spot demand and a rare net-short bias in derivatives sets a measurable backdrop as the third quarter opens.
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