Spot Ether exchange-traded funds (ETFs) in the United States set a remarkable record on November 29, with daily inflows of $332.9 million. This milestone outperformed the previous record of $295.5 million set on November 11 by $37.4 million, reflecting a surge in investor interest in Ethereum-based ETFs.
The latest data from SoSoValue highlights that ETH spot ETFs outpaced Bitcoin ETFs, which recorded $320.01 million in inflows on the same day. This marks the first time ETH has led daily inflows, coinciding with a 3% price increase for ETH, while Bitcoin’s price remained largely stagnant during the same period.
BlackRock Dominates Ether ETF Inflows
Ethereum ETFs have five consecutive days of positive net inflows, demonstrating growing institutional interest. According to Farside Investors, BlackRock’s Ether ETF (ETHA) alone attracted $250 million on November 29, followed by $79.1 million in inflows for Fidelity’s FETH. The ETHA has now surpassed $2 billion in cumulative inflows since its launch in July.
BlackRock’s Bitcoin ETF (IBIT) recorded $137.5 million in inflows, which means that this amount has been shifted from Bitcoin to ETH. This was seen when Bitcoin ETFs had zero inflows on all the days in a row. Market analysts view this as a directional shift toward ETH, which is gaining more momentum in the digital asset market.
BlackRock reported $250.4 million of Ether ETF net inflows on November 29. Nate Geraci, the president of The ETF Store, shared on social media that BlackRock’s iShares ETH Trust (ETHA) is the instrument contributing to the momentum, and institutional investors have found ETH valuable.
According to CoinMarketCap, ETH’s price is $3,672.96 at the time of writing, up 2.63% since November 29. Crypto trader Pentoshi commented on Twitter’s growing interest, noting that inflows are absorbing sellers, hinting at sustained momentum for ETH-based ETFs.
“Now we have early signs of this happening in ETH, as the flows begin to finally pick up, and sellers begin to get absorbed. It only takes time.”
ETH Gains Institutional Spotlight
November 29 was the first time Ether ETFs backed by the physical cryptocurrency had higher inflows than Bitcoin ETFs, even though the latter also had inflows. Besides, ETH ETFs have been showing steady inflows, and Bitcoin ETFs have suffered from a slight blow of outflows lately.
From November 22 to November 27, Ether ETFs attracted $224.9 million in net inflows compared to Bitcoin ETFs’ $35.2 million. Analysts attribute this divergence to ETH’s gaining traction in the decentralized finance (DeFi) ecosystem and a recent U.S. court ruling favouring DeFi, further boosting investor confidence in ETH as a key digital asset.
Prominent analysts noted the growing appeal of ETH among institutional investors. Felix Hartmann, founder of Hartmann Capital, highlighted Wall Street’s increasing focus on ETH as the altcoin narrative gains momentum. ETH Vibin mentions this sentiment, emphasizing Ethereum ETFs flipping Bitcoin ETFs in daily inflows for the first time.
Despite Ether ETFs’ dominance, Bitcoin ETFs’ slowing inflows signal a broader shift in investor preferences. As Ethereum’s DeFi victories and market dynamics drive attention, ETH ETFs are poised to sustain growth, reflecting its expanding use case and relevance in the cryptocurrency market.
Related Reading: Ethereum ETFs Surge with Major Inflows, Grayscale Outflows Hit $2 Billion
