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US spot Ethereum ETFs are gaining momentum with total inflows reaching over $800 million in the past week amid the ETH price surge.
Key Notes
The Ethereum ETF net inflows turned positive following Donald Trump’s recent election win, reversing an earlier trend of outflows.Bitwise CIO Matt Hougan, predict that Ethereum ETFs will attract growing institutional interest in 2025.This will be possible along with the ETH price hitting new all-time highs above $5,000.The US spot Ethereum ETFs have continued to show strength registering inflows for the sixth consecutive day in a row. On Wednesday, the total inflows stood at $146 million with Fidelity’s FETH alone seeing more than $100 million in inflows.
Amid these strong flows, the total inflows into spot Ethereum ETF have turned net positive following the Donald Trump victory last week. Just in the last six trading sessions, these ETFs have attracted more than $800 million in inflows, per the data from Farside Investors.
A majority of these inflows came in the past three days representing the top three individual inflow days since these ETFs launched, signaling strong investor interest.
The spot Ether ETFs had a pretty low traction after launch in late July 2024, unlike the Bitcoin ETFs. Until early November, the total outflows were to the tune of $500 million. However, this has completely reversed in just the last week as this investment product now has total inflows of more than $240 million.
Will Spot Ethereum ETF Inflows Continue?
The recent inflows into spot Ethereum ETFs have been amid the broader market rally and the ETH price surge to $3,300. However, investors remain confused as to whether this shall sustain or not moving ahead.
Despite these healthy inflows, the Bitcoin ETFs get the first preference from institutional players. While the BTC ETFs got the early headstart, the Ethereum ETFs have failed to catch up and constitute 1/100 of the inflows in the spot Bitcoin ETFs.
This may explain why BTC has been outperforming altcoins by a wide margin. When will this situation improve for ETH ETH $3 215 24h volatility: 1.5% Market cap: $387.86 B Vol. 24h: $60.05 B ? It’s uncertain, but if the Trump administration introduces stronger regulations favoring Bitcoin, the gap between BTC and altcoins could widen even further.
However, other market analysts feel that it’s wrong to compare Ethereum and Bitcoin. Both are distinct and believe that Ethereum ETFs will also attract institutional inflows in 2025. Bitwise CIO Matt Hougan wrote:
“ETH ETF flows are going to surprise people in 2025. There is growing institutional demand for ETH exposure”.
Additionally, it turns out that BlackRock Advisors have been purchasing their own Ether ETFs per the recent SEC filing.
Not Only That, But it Appears Blackrock Advisors Bought its Own Ethereum ETF in One of the Mutual Funds
That's a first, right? @EricBalchunas https://t.co/i24pKXlXLP pic.twitter.com/kUtWbzoMNa
— matthew sigel, recovering CFA (@matthew_sigel) November 14, 2024
ETH Price Rally to $4,000?
After strong 40% gains on the weekly chart following the Donald Trump victory, the ETH price has surged to $3,300 with bulls taking a momentary pause there. Currently, ETH price has been facing a strong resistance at $3,260 levels which the bulls need to breach in order to stager further rally ahead.
#Altcoins #Ethereum $5,700 as Intermediate Target 🎯#ETH is at a crucial level: Kijun 🔵.
Once it clears this level and breaks above the Kumo Cloud, the 100% Fibonacci extension could pull it like a magnet 🧲. pic.twitter.com/FiDXqoIBtE
— Titan of Crypto (@Washigorira) November 9, 2024
Once the bulls take this out, market analysts are predicting ETH price to new all-time highs above $5,500. It will be interesting to see whether ETH participates in the altcoin rally in 2025 rallying all the way to $10,000 as predicted by several analysts.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
