Originally published on: November 07, 2024
The recent spike in Ethereum’s price, with a remarkable 10% increase, has led to a surge in inflows for US spot Ether exchange-traded funds. This six-week high movement in the crypto market was closely tied to the aftermath of the US presidential election.
On November 6, the nine newly launched spot Ether ETFs witnessed an impressive net aggregate inflow of $52.3 million. Although this amount falls short of the inflows in Bitcoin ETFs, it marks the highest inflow for Ether funds since September 27, as reported by Farside Investors.
Despite the BlackRock’s iShares Ethereum Trust showing a net zero flow, the majority of the inflows were directed towards the Fidelity Ethereum Fund, receiving $26.9 million. Similarly, the Grayscale Ethereum Mini Trust also attracted significant inflows of $25.4 million, while the other seven spot Ether ETFs reported zero flows.
This sudden surge has contributed to a total net aggregate negative of $490 million for all Ether ETFs, largely due to the ongoing exodus from Grayscale’s high-fee ETHE fund, which has faced a loss of $3.1 billion in assets under management since transitioning to a spot ETF in July.
In contrast, the 11 US spot Bitcoin ETFs experienced a positive net inflow of $621.9 million on November 6, breaking a streak of three consecutive days of outflows. Notably, the Fidelity Wise Origin Bitcoin Fund led the inflow day with a substantial $308.8 million, its highest since June 4.
Overall, the market capitalization of spot crypto markets reached $2.64 trillion, with Bitcoin hitting another all-time high above $76,000. Ethereum’s notable 10% surge, rising to an intraday high of $2,872 on November 7, marked its highest price since early August.
The burgeoning interest in cryptocurrencies further underscores the evolving landscape of investment opportunities. As the markets continue to show dynamic shifts, staying informed and strategic in trading approaches remains paramount for investors seeking to optimize gains and navigate risks effectively. Subscribe to our Markets Outlook newsletter for insightful content on emerging trends and actionable insights to enhance your trading strategies.
