The United States-based spot Ether exchange-traded funds (ETFs) experienced a significant shift as net inflows turned positive for the first time since their launch in July. The surge in inflows comes as Ethereum (ETH) prices have soared, and institutional interest in crypto-related products continues to grow.
On November 12, nine spot Ether ETFs saw a combined net inflow of $135.9 million, following a record $295 million influx the previous day, according to data from Farside Investors. The two consecutive days of positive inflows pushed the total net flows for the funds to a net positive $107.2 million, marking the first time this has occurred since the ETFs debuted earlier in the year.
This shift in inflows contrasts with the ongoing decline seen in Grayscale’s Ethereum Trust, which reported a net outflow of $33.2 million on November 12, continuing its streak of losses. Overall, the total outflows from Grayscale’s Ethereum Trust have now exceeded $3.1 billion, further highlighting the growing momentum of spot Ether ETFs as the preferred investment vehicle.
The standout performer among the spot Ether ETFs is BlackRock’s iShares Ethereum Trust, which recorded its second-largest inflow since launch. With $131.4 million in new investments on November 12, the fund’s growth has been impressive, surpassing its prior inflow record of $266.5 million set on July 23. As of now, BlackRock’s fund has attracted a total of $1.67 billion in inflows and has yet to experience a single day of net outflows since its launch.
Nate Geraci, president of ETF Store, commented on X (formerly Twitter) that the BlackRock iShares Ethereum Trust ranks as one of the top six ETF launches of 2024, reflecting the increasing investor interest in Ethereum-based products. The robust inflow trend continues with other funds, including the Bitwise Ethereum ETF, which saw an inflow of $17 million, and Grayscale’s Ethereum Mini Trust, which recorded $12.7 million. Smaller inflows were also seen in Ark 21Shares and VanEck’s Ethereum ETFs.
The surge in inflows is part of a larger trend, as Ether ETFs have now experienced five consecutive days of inflows, totaling almost $650 million over that period. This steady growth comes amid Ethereum’s impressive price performance, with ETH surging 32% over the past week, reaching over $3,400 per token as of November 12. Ethereum’s market capitalization surpassed $400 billion, reinforcing its position as a leading player in the cryptocurrency market.
While Ether ETFs have been capturing the spotlight, spot Bitcoin ETFs also performed strongly on November 12, with a combined inflow of $817.5 million. The concurrent growth in both Ether and Bitcoin ETFs signals a growing demand for crypto investment products from traditional investors.
In a separate post on X, Geraci noted that the intersection of cryptocurrencies and ETFs is one of the most exciting developments in asset management today. "ETFs are simply a bridge for the mainstream to access crypto," he said. "Once that bridge is fully built, there’s no going back."
The influx of institutional money into Ethereum and the broader cryptocurrency market is a clear sign that digital assets are increasingly seen as an integral part of the global financial ecosystem. With major asset managers like BlackRock and Bitwise leading the charge, and regulators adapting to the rapidly changing landscape, the crypto-ETF market is poised for continued growth in the coming years.
As Ethereum and other cryptocurrencies continue to gain traction in the mainstream, investors and market participants will be watching closely to see how these trends evolve, especially as more ETFs enter the market and attract greater capital flows.
November 2024, Cryptoniteuae