Historic Inflows Mark Growing Interest in Ethereum ETFs
Ethereum ETFs in the United States recorded a historic $294.9 million in inflows on Nov. 11, marking their largest single-day inflow since their July launch. This surge highlights the growing interest in Ethereum ETFs as the crypto markets’ rally continues post-election.
Fidelity’s spot Ethereum ETF led the inflows, securing $115.5 million, the highest on that day. In addition, BlackRock’s iShares Ethereum Trust ETF captured $100.5 million, while Grayscale’s Ethereum Mini Trust ETF reported $63.3 million.
The Bitwise Ethereum ETF recorded a smaller, yet notable, $15.6 million inflow. This influx of capital into these funds reflects an increasing appetite among investors looking for exposure to Ethereum without directly holding cryptocurrency.
With spot Ethereum ETFs, traditional investors can tap into Ethereum’s performance, avoiding the complexities of crypto wallets and direct asset ownership. These funds, launched in July, initially garnered $106.6 million on their first day, but this November record signifies an accelerated momentum for Ethereum ETFs.
Post-Election Rally and Increasing Demand for Ethereum ETFs
Donald Trump’s recent election win has contributed to this surge, as market participants anticipate a pro-crypto administration supportive of blockchain adoption. According to CK Zheng, founder at ZX Squared Capital, Ethereum ETFs could benefit from this environment.
He added that a pro-blockchain stance could drive further investments in Ethereum ETFs.
Ethereum Gains Traction Amid Broader Market Surge
Meanwhile, according to CoinGecko, Ether’s price reached a 14-week high of $3,384 on the same day. This price surge aligned with a broader crypto market uptick, as Bitcoin and Solana also experienced notable gains.
While Ethereum staking returns aren’t accessible through US Ethereum ETFs, analysts like Rachael Lucas from BTC Markets expect staking to become a stronger consideration for traditional investors, further enhancing Ethereum’s appeal. The interest in Ethereum ETFs could mark a shift in the investment landscape as more institutional players warm up to ETH’s potential in the coming months.
Since their launch, these Ethereum ETFs have accumulated nearly $3.1 billion in inflows. BlackRock’s Ethereum ETF remains the top performer among them, with inflows surpassing $1.5 billion since July.
Notably, the Grayscale Ethereum Trust ETF (ETHE), launched earlier, has experienced outflows totaling around $3.13 billion.
Ethereum Weekly Transactions Surge to $60B
Moreover, Ethereum’s weekly transaction volume has surged to $60 billion, reflecting heightened network activity. The mainnet has processed a record number of transactions over the past week, its highest weekly volume since July.
Ethereum’s popularity appears to be rising, even as its price fluctuates below its peak levels. Data from IntoTheBlock indicates that this volume had gradually recovered from its mid-2022 lows when activity initially slowed amid market-wide bearish conditions.
The surge in weekly transaction volume suggests growing demand, even as the ETH price experiences minor fluctuations. This aligns with historical trends in which Ethereum’s transaction volume and price have typically moved in parallel, reflecting high market interest during bull runs and downturns.
Key On-Chain Metrics
According to DefiLlama, Ethereum’s Total Value Locked (TVL) across DeFi applications now stands at $59.327 billion. Stablecoins hosted on the Ethereum network have a combined market cap of $89.517 billion, underscoring Ethereum’s role in the broader DeFi ecosystem.
Over the past 24 hours, ETH has processed $2.387 billion in transactions and recorded $72.74 million in inflows, illustrating the network’s substantial daily throughput. Active user participation also remains strong, with 391,248 active addresses and 64,793 new addresses created in the past day.
Furthermore, high-value transfers (transactions exceeding $100,000) accounted for $51 billion in weekly activity, which suggests substantial engagement from large investors and institutions.
Holder Insights and Market Trends
Additionally, large holders control 53% of Ethereum’s total supply, pointing to a high concentration of wealth among top investors. This distribution signals strong confidence in Ether’s future.
Another indicator of Ethereum’s broader market alignment is its correlation with Bitcoin, currently at 0.84. This close relationship with Bitcoin shows that Ether’s price movements often mirror the overall crypto market, providing insights into its volatility and momentum.
