Ethereum (ETH) exchange-traded funds (ETF) experienced a significant surge in inflows on November 11, totaling $295.5 million, the highest daily positive net flow since their launch. Fidelity’s FETH led the inflows with $115.5 million, followed by BlackRock’s ETHA at $101.1 million and Grayscale’s Ethereum Mini Trust at $63.3 million. Bloomberg senior ETF analyst Eric Balchunas believes that Grayscale’s Ethereum Trust (ETHE) not registering any outflows for the past six days is a positive sign that ETHE’s unlocks are over, indicating potential growth ahead for Ethereum ETFs.
While Ethereum ETFs still trail behind Bitcoin (BTC) ETFs, their individual performance is notable, with ETHA ranking as the sixth-largest ETF launch by inflows in 2024 out of over 600 new ETFs. ETF Store CEO Nate Geraci highlighted a remarkable trend in Ethereum ETFs post-US election results, with over $500 million in inflows in just four days. This surge in inflows is driven by increasing institutional adoption, such as the Michigan Retirement System’s $11 million investment in Grayscale Ethereum ETFs during the third quarter, making it the first public pension fund to add Ethereum to its portfolio.
The Michigan fund now holds more Ether than Bitcoin, with $7 million in Bitcoin exposure as of September 30. Balchunas suggested that introducing options trading for Ethereum ETFs could further accelerate inflows by attracting larger institutional investors, although progress on this front may be slow. The US Securities and Exchange Commission’s (SEC) recent delay in making a decision on this matter, with some analysts predicting a final decision could take until April 2025.
Overall, the significant increase in inflows into Ethereum ETFs, fueled by institutional support and adoption, suggests a bright future ahead for Ethereum investments. With growing interest and investment in Ethereum ETFs, it is clear that the cryptocurrency market continues to evolve and attract a broader range of investors, paving the way for further growth and development in the digital asset space.
