Ethereum (ETH) ETF sees record inflows as Ethereum (ETH) price outperforms Bitcoin (BTC).
U.S. spot Ethereum (ETH) exchange-traded funds (ETFs) recorded record daily inflows on Friday, with the second-largest cryptocurrency bouncing in catch-up trading after significantly underperforming Bitcoin (BTC) this year. This is another sign that you are receiving it.
The nine instruments combined had net inflows of $332.9 million during Friday’s shortened trading session, according to data compiled by Farside Investors. BlackRock’s iShares Ethereum Trust (ETHA) and Fidelity Ethereum Fund (FETH) led the way, raising $250 million and $79 million in new funding, respectively.
Friday marked the fifth consecutive session with net inflows for the group, and it closed its second-strongest week with net inflows of $455 million, according to SoSoValue data. The week is shortened because traditional markets in the U.S. are closed on Thanksgiving Thursday.
The Ether ETF also attracted $320 million in inflows on Friday, outpacing inflows to its spot Bitcoin counterpart, which suffered net outflows during the week.
After falling out of favor with investors this year and lagging Bitcoin in price action and ETF flows, Ethereum has recently enjoyed a resurgence as Donald Trump’s election victory revived interest in altcoins and decentralized finance (DeFi) applications.
Along with strong ETF inflows, open interest in ETF futures on the institutional-focused Chicago Mercantile Exchange (CME) hit a record high of nearly $3 billion, according to Coinglass, supporting improving sentiment for the asset.
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Noting strong ETF inflows, cryptocurrency trader Edward Morra called ETH “the most obvious catch-up trade of the cycle” in an X post on Saturday.
Bitcoin consolidated below $100,000 for the week, but ETH also showed relative strength against the largest cryptocurrencies. The price of ETH hit a five-month high above $3,700 last Saturday, outperforming BTC on a weekly and monthly basis but still lagging year-on-year, CoinDesk index data shows.
The ETH-BTC ratio is likely to form a major bottom after about three years of declines, LMAX Group market strategist Joel Kruger said in a note on Friday.
“We believe the improved outlook for the DeFi space, i.e. a warming regulatory environment with the incoming US administration, is a key driver of the change in sentiment,” Kruger said. “Market participants now see a clearer path towards investing in Ethereum. Because you can,” Kruger said.
