Spot-based Ethereum exchange-traded funds (ETFs) in the U.S. witnessed significant momentum recently, with record daily inflows on Friday totaling $332.9 million. This surge indicates a growing interest in Ethereum as it gains traction in the market, notably outperforming Bitcoin in both weekly and monthly performance metrics.
The enhanced enthusiasm for these ETFs is largely attributed to the strong performance of BlackRock’s iShares Ethereum Trust (ETHA) and the Fidelity Ethereum Fund (FETH), which attracted $250 million and $79 million, respectively. This marks the fifth consecutive session of net inflows for the group, culminating in a total of $455 million for the week, despite the context of a shortened trading week due to the U.S. Thanksgiving holiday.
In stark contrast, Bitcoin ETF counterparts saw $320 million in inflows on the same Friday but experienced net outflows throughout the week. The renewed interest in Ethereum can be linked to the broader market context, including a changing regulatory climate and increased interest in decentralized finance (DeFi) applications following Donald Trump’s recent election victory.
Market strategist Joel Kruger from LMAX Group highlighted the positive outlook for the DeFi sector as crucial to this shift in investor sentiment, suggesting that it suggests a clearer path for investment in Ethereum.
Adding to the positive sentiment, open interest in ETF futures on the Chicago Mercantile Exchange (CME) reached nearly $3 billion, underscoring institutional interest in Ethereum. Crypto trader Edward Morra labeled ETH as “the most obvious catch-up trade of this cycle,” reflecting the asset’s relative strength despite Bitcoin’s recent consolidation below $100,000.
As Ethereum’s price approached a five-month high, indicating momentum in its performance, the interplay between regulatory shifts and market dynamics continues to shape the cryptocurrency landscape, particularly for Ethereum as it seeks to reclaim its standing in the market.
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