Spot Ethereum ETFs See Surge in Inflows
Key Points:
- Spot Ethereum ETFs attracted $333 million in inflows on Friday, November 29th.
- This surge indicates growing institutional interest in Ethereum.
Reasons for the Surge:
The influx of $333 million into the top 10 spot Ethereum ETFs in the US on Friday highlights a positive trend in institutional investment. Experts link this renewed interest to:
- Anticipated clearer cryptocurrency regulations in the US.
- Optimistic sentiments surrounding DeFi (Decentralized Finance).
Comparative Analysis:
Despite Ethereum’s spot ETFs receiving SEC approval in July 2024, the cryptocurrency’s price has lagged compared to Bitcoin and the broader crypto market. Ethereum’s price dropped by approximately 32% in the first 15 days post-approval, whereas Bitcoin’s decline was only 15.02% within the same timeframe following the Bitcoin ETF approval in January 2024.
Rising Interest in Ethereum:
Recent data indicates a growing interest in Ethereum among institutions and traders:
- The Sygnum Digital Bank’s Future Finance Report revealed that 90% of traditional investors surveyed are currently invested in blockchain protocol coins.
- 31% of existing crypto holders plan to increase their allocation in Q4-2024.
- 32% intend to expand their crypto portfolios in the next six months.
Growth in Ethereum’s Open Interest:
CME’s historical data for Ethereum’s open interest shows a steady increase since November 4th, reaching $3.01 billion. This uptrend signifies a heightened institutional interest in Ethereum.
Ethereum has rebounded from a yearly low of around $2,100 in August and is now nearing its peak at $4,100.
Ethereum is currently trading at $3,600, close to its yearly high.
