The cryptocurrency market witnessed a milestone on November 29, as spot Ether (ETH) exchange-traded funds (ETFs) in the United States recorded an unprecedented $332.9 million in daily inflows. This figure, reported by Farside data, eclipsed the previous record of $295.5 million set on November 11 by $37.4 million, underscoring growing institutional interest in Ethereum-based investment products.
BlackRock Leads the Charge
BlackRock, the world’s largest asset manager, spearheaded this record-breaking day, contributing $250.4 million of the total inflows. Since its launch on July 23, BlackRock’s iShares Ethereum Trust (ETHA) has accumulated over $2 billion in inflows, as highlighted by ETF Store President Nate Geraci in a November 29 X post.
Ethereum’s price reflected the bullish sentiment, climbing 1.88% to $3,662 as of November 29, according to CoinMarketCap. Crypto traders and analysts, such as the pseudonymous Pentoshi, noted the significance of the inflows, observing early signs of ETH seller absorption, which could indicate sustained upward momentum.
Ether ETFs Surpass Bitcoin ETFs
In a historic shift, Ether ETFs outperformed spot Bitcoin ETFs in daily inflows, which tallied $320 million on November 29. Ethereum Vibin, a prominent crypto commentator, emphasized this milestone in an X post, stating, “ETH ETF flows have flipped BTC ETF flows for the first time.”
Going to go back to these days, when the ETF started to ramp up for $BTC, and people kept asking why price not up (as sellers were being absorbed)
— 🐧 Pentoshi (@Pentosh1) November 30, 2024
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… https://t.co/fAoKy82UND pic.twitter.com/mSuNWBWGtu
Felix Hartmann, founder of Hartmann Capital, interpreted the trend as a signal that Wall Street is increasingly shifting focus toward Ethereum, heralding what he termed an “alt rotation.” This sentiment is reinforced by Ethereum’s strong performance in decentralized finance (DeFi) and recent legal victories in the U.S., which have bolstered investor confidence.
Sustained Inflows Amid Bitcoin ETF Outflows
This isn’t an isolated event. Spot Ether ETFs have consistently recorded positive inflows, even during periods when Bitcoin ETFs experienced outflows. Between November 22-27, Ether ETFs amassed $224.9 million in net inflows, compared to $35.2 million for Bitcoin ETFs. Notably, Bitcoin ETFs saw a significant outflow on November 25, highlighting a divergence in investor sentiment.
Ethereum’s Growing Appeal
The increasing preference for Ether ETFs over Bitcoin ETFs may signal a broader shift in market dynamics. Ethereum’s expanding role in DeFi, combined with strong institutional backing, positions it as a key contender in the cryptocurrency market.
As Wall Street continues to embrace Ethereum, the record-breaking inflows underscore its potential to rival Bitcoin as the preferred cryptocurrency for institutional investors. Whether this trend will persist remains to be seen, but for now, Ethereum is undeniably enjoying its moment in the spotlight.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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