Is Ethereum the New Wall Street Darling? $743M ETF Inflows Say Yes

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Ethereum (ETH), the world’s second-largest cryptocurrency, is quietly building momentum. Despite facing multi-week consolidation and repeated rejections at key resistance levels, underlying fundamentals are strengthening. From surging ETF inflows to falling exchange reserves, Ethereum’s ecosystem is flashing signs of renewed confidence. But the big question remains: will it finally break out?

10x Research: Is Wall Street Finally Warming to ETH?

In a recent X post, 10x Research questioned whether Wall Street is beginning to take Ethereum seriously. Last year, the firm held a bearish stance on ETH ETFs, citing poor institutional demand and stagnant on-chain activity, conditions that dragged ETH from $4,000 to $1,500. Today, however, they admit price action has surprised to the upside. 

Ethereum is now approaching the apex of a triangle pattern, which could result in a sharp breakout toward $2,000 or $3,000, triggered by fundamental shifts or a large buyer stepping in.

The key question, they argue, is whether Wall Street has finally figured out how to market Ethereum ETFs to long-term investors, similar to how Bitcoin ETFs drew in massive flows. If so, ETH could be on the verge of a game-changing rally.

Meanwhile, on Binance, traders are heavily betting against Ethereum again, just like they did back in February before prices dropped. Many investors might be using ETH ETFs and staked ETH in a smart strategy to earn passive income, while also shorting Ethereum to protect themselves if the price falls. It’s a balanced, “hedged” approach similar to what platforms like Ethena offer.

ETF Inflows Hit 12-Day Streak

This confidence came with the consistent capital inflow into U.S. spot Ethereum ETFs. For 12 consecutive days, the funds have attracted net inflows totaling $743.8 million, according to SoSoValue. On Tuesday alone, inflows hit $109.43 million, the second-highest since February, with BlackRock’s ETHA leading at $77 million. Since May 11, ETHA has accumulated over 214,000 ETH, suggesting growing institutional interest.

Meanwhile, Ethereum’s exchange reserves have also gone down by 450,000 ETH in just a week, hitting a low not seen since 2016. This trend points to long-term accumulation, with investors moving ETH off exchanges and into cold storage, a typical bullish signal.

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Headwinds Still Exist…

However, caution continues as Futures data from CME and Binance show a rise in short positions, reflecting a bearish sentiment. Meanwhile, ETH continues to face technical rejection at a rising trendline.

The Road Ahead

From the Petra upgrade improving on-chain activity to Sharplink Gaming’s massive $425M ETH buy, signs of broader adoption are emerging. Legislative progress, like the GENIUS Act in the U.S. Senate, could also further legitimize Ethereum.

With price action coiling and investor activity heating up, Ethereum may be on the verge of its next major move, just as Wall Street begins to notice.