Ethereum ETFs See Record $333M Inflows, Outpacing Bitcoin Funds as Catch-Up Trade Gains Momentum

Improved
outlook
for
the
DeFi
space
and
warmer
regulatory
climate
with
incoming
U.S.
administration
are
main
drivers
behind
the
sentiment
shift
towards
ether,
LMAX
strategist
Joel
Kruger
said.

Dec
1,
2024,
12:31 p.m.

Spot
ethereum
(ETH)
exchange
traded
funds
(ETF)
in
the
U.S.
saw
record
daily
inflows
on
Friday,
another
sign
that
the
second-largest
cryptocurrency
is
gaining
momentum
as
a
catch-up
trade
after
vastly
underperforming
bitcoin
(BTC)
this
year.

The
nine
products
combined
booked
$332.9
million
in
net
inflows
during
Friday’s
shortened
trading
session,

data
compiled
by
Farside
Investors
shows.
BlackRock’s
iShares
Ethereum
Trust
(ETHA)
and
Fidelity
Ethereum
Fund
(FETH)
led,
attracting
$250
million
and
$79
million
in
fresh
funds,
respectively.

Friday
was
the
fifth
consecutive
session
with
net
inflows
for
the
group,
and
concluded
the
second
strongest
week
with
$455
million
in
net
inflows,
per

SoSoValue
data.
It
was
a
shorter
week
as
U.S.
traditional
markets
were
closed
on
Thanksgiving
Thursday.

Ether
ETFs
also
outpaced
flows
into
their
spot
bitcoin
counterparts,
which
gathered
$320
million
inflows
on
Friday
and
suffered
net
outflows
during
the
week.

After

falling
out
of
investors’
favor
and
lagging
behind
bitcoin
in
price
action
and
ETF
flows
this
year,
ether
has
enjoyed
a
resurgence
recently
as
Donald
Trump’s
election
victory
rejuvenated
interest
in
altcoins
and
decentralized
finance
(DeFi)
applications.

Along
with
strong
ETF
inflows,
open
interest
for
ETF
futures
on
the
institutional-focused
Chicago
Mercantile
Exchange
(CME)
surged
to
all-time
records
of
almost
$3
billion,
per

CoinGlass,
underscoring
the
improving
sentiment
towards
the
asset.

Read
more:

Think
Ethereum’s
ETH
is
Dead?
Surging
Metrics
Show
Otherwise

Noting
the
strong
ETF
inflows,
crypto
trader
Edward
Morra
called
ETH
“the
most
obvious
catch-up
trade
of
this
cycle,”
in
a
Saturday

X
post.

While
bitcoin
spent
the
week
consolidating
below
$100,000,
ETH
also
showed
relative
strength
against
the
largest
crypto.
ETH’s
price
hit
a
five-month
high
above
$3,700
on
Saturday
and
outperformed
BTC
on
both
a
weekly
and
monthly
basis,
although
it’s
still
lagging
year-on-year,
CoinDesk
Indices
data
shows.

It’s
possible
that
the
ETH-BTC
ratio
is
forming
a
major
bottom
after
trending
down
for
about
three
years,
Joel
Kruger,
market
strategist
at
LMAX
Group,
said
in
a
Friday
note.

“We
believe
the
improved
outlook
for
the
DeFi
space
—
warmer
regulatory
climate
with
incoming
US
administration
—
is
a
main
driver
behind
the
shift
in
sentiment,
as
market
participants
can
now
see
a
clearer
path
towards
investment
in
Ethereum,”
said
Kruger.