Ethereum-based Funds See Record Inflows, Outperforming Bitcoin
- Global Ethereum-based funds registered $634 million in net inflows, reaching a new annual record.
- U.S. spot Ethereum ETFs led the flows, adding $466.5 million.
- Analysts argue that the recent inflection in Ethereum ETF inflows makes ether's risk-reward look attractive.
- Ethereum outpaced Bitcoin in inflows at high levels, reflecting renewed investor interest.
- XRP-based funds generated a record $95 million in net weekly inflows amid a price rise.
- Bitcoin struggled with a $100,000 resistance level, resulting in outflows from Bitcoin-based investment products.
Summary :
Global Ethereum-based funds, including those managed by BlackRock, Bitwise, Fidelity, Grayscale, ProShares, and 21Shares, experienced a significant increase in net inflows last week, reaching a new annual record of $634 million, according to CoinShares. This surge in sentiment for Ethereum resulted in year-to-date net inflows of $2.2 billion, surpassing the previous peak of $2 billion set in 2021. The U.S.-based spot Ethereum exchange-traded funds (ETFs) led the inflows, adding $466.5 million during the Thanksgiving holiday week. Analysts at Bernstein believe that the likely approval of staking yields on these ETFs, along with the recent increase in Ethereum ETF inflows, makes the risk-reward profile of Ethereum attractive. Despite a slow start, the funds have attracted over $1.1 billion in net inflows since the U.S. election, reaching a total of $583.8 million in net inflows and $11 billion in assets under management. Ethereum's performance has outpaced Bitcoin, with a 47.15% monthly gain, reflecting renewed investor interest. The global crypto market cap has risen by 72% since the U.S. election, indicating early signs of an alt-season. In contrast, Bitcoin struggled with a $100,000 resistance level, leading to outflows of $457 million from Bitcoin-based investment products. However, digital asset investment products overall saw an eighth consecutive week of net inflows, adding $270 million globally, with year-to-date inflows reaching a new peak of $37.3 billion. U.S.-based spot Ethereum ETFs experienced their highest single-day inflows since trading began in July, adding nearly $333 million in value. The record inflows have pushed the total value of these funds to over $11 billion. Ethereum also reclaimed USDT dominance, with more of the stablecoin hosted on the network than Tron for the first time since 2022.
Sources :
- TheBlock
- TheBlock
