The increasing interest in Ethereum ETFs has revealed that investors are turning from Bitcoin to Ether. According to Farside Investors, in the United States this month, there has been an inflow of $393 million into nine Ether ETFs, while Bitcoin ETFs witnessed an outflow of $376 million.

Cryptocurrency investors have begun to shift from Bitcoin to Ethereum in recent times. Significant growth in demand for Ether exchange-traded funds (ETFs) has been observed prior to the Spectra upgrade, one of Ethereum’s (ETH) major network improvements. This month, there was a $393 million influx into spot Ethereum ETFs listed in the US, accompanied by a $376 million outflow from Bitcoin ETFs. Experts believe this trend is setting a positive ground for ETH.

RECORD INFLUX TO ETHEREUM ETFs
According to data from Farside Investors, nine Ether ETFs traded in the US saw a total net inflow of $393 million in February. This amount is approximately seven times larger than the inflows recorded in January. The intense demand for Ethereum ETFs was notable due to the funds experiencing outflows in just two trading days.

In contrast, there was an outflow of $376 million from Bitcoin ETFs. While Bitcoin ETFs recorded inflows in just four trading days, investors chose to reduce their BTC positions in the remaining days. Bitcoin’s failure to surpass the $100,000 mark and volatile price movements influenced investors to change direction.

INVESTORS SWITCHING TO ETHEREUM
The increasing interest in Ethereum also revolves around ETF investors employing the “carry trade” strategy. In this strategy, investors purchase Ethereum ETFs while simultaneously taking short positions in ETH futures to create arbitrage opportunities. Moreover, it is noted that some investors’ entries into Ethereum ETFs were solely based on rising expectations.

However, Ethereum’s price is yet to provide a clear response to this activity. Following a sharp decline on February 3rd, ETH has been trading in a narrow range of $2,600-$2,800. Similarly, Bitcoin remaining below $100,000 is causing uncertainty among investors.

One of the major reasons for the increased interest in Ethereum is the Spectra upgrade expected to take place on April 8th. This upgrade is anticipated to enhance transaction speeds on the Ethereum network, improve staking mechanisms, and overall increase efficiency.

Nick Forster, the founder of decentralized options platform Derive.xyz, states that with the Spectra upgrade, Ethereum can better compete with rival Layer 1 blockchains like Solana. Forster mentioned, “Ethereum’s fundamentals appear strong. The Spectra upgrade on April 8th is expected to deliver significant improvements to the network. Faster transactions and enhanced staking mechanisms may attract investors.”

Furthermore, the efforts by Ethereum co-founder Vitalik Buterin to increase the Layer 1 gas limit by 10 times are highlighted as critical for the network’s scalability. Additionally, the Ethereum Foundation’s provision of $120 million in funds to decentralized finance (DeFi) projects signals growth in the ecosystem.

PRICE PREDICTIONS FOR ETH
Analysts indicate a 30.51% chance of Ethereum surpassing the $3,000 mark by the end of the first quarter of the year. Last week, this percentage stood at 28.42%, and it is suggested that with the ongoing high demand for Ethereum ETFs, the upward potential could further increase.