Ethereum exchange-traded funds (ETFs) saw record daily inflows on Friday, with a total of $332.9 million in net inflows during the shortened trading session. The improved outlook for the DeFi space and warmer regulatory climate are driving market participants to invest in Ethereum.
Ethereum exchange-traded funds (ETFs) in the U.S. saw record daily inflows on Friday, with a total of $332.9 million in net inflows during the shortened trading session.
Strong ETF Inflows Indicate Growing Interest in Ethereum
Crypto trader Edward Morra called ETH “the most obvious catch-up trade of this cycle,” in a Saturday X post, noting the strong ETF inflows. While bitcoin spent the week consolidating below $100,000, ETH showed relative strength against the largest crypto.
Improved Outlook for DeFi Space Contributes to Shift in Sentiment
Market strategist Joel Kruger at LMAX Group stated that the improved outlook for the DeFi space is a main driver behind the shift in sentiment. The warmer regulatory climate with the incoming US administration has created a clearer path towards investment in Ethereum, allowing market participants to see a more favorable future for the asset.
Ether ETFs Outpace Spot Bitcoin Counterparts
Ether ETFs also outpaced flows into their spot bitcoin counterparts, which gathered $320 million inflows on Friday and suffered net outflows during the week. The recent resurgence of interest in altcoins and decentralized finance (DeFi) applications has contributed to the improved sentiment towards Ethereum.
Open Interest for ETF Futures Surges to All-Time Records
Open interest for ETF futures on the institutional-focused Chicago Mercantile Exchange (CME) surged to all-time records of almost $3 billion, per CoinGlass. This underscores the improving sentiment towards Ethereum and its associated assets.
Key Takeaways:
- Ether ETFs outpaced flows into their spot bitcoin counterparts, which gathered $320 million inflows on Friday and suffered net outflows during the week.
Record Daily Inflows for Ethereum ETFs
BlackRock’s iShares Ethereum Trust and Fidelity Ethereum Fund Lead Inflows
The two leading products, BlackRock’s iShares Ethereum Trust (ETHA) and Fidelity Ethereum Fund (FETH), attracted $250 million and $79 million in fresh funds, respectively. This surge in investment is a significant indicator of the growing interest in Ethereum as a catch-up trade.
Improved Sentiment Towards Ethereum
The improved outlook for the DeFi space, combined with a warmer regulatory climate, is driving market participants to invest in Ethereum. Joel Kruger, market strategist at LMAX Group, noted that the ETH-BTC ratio may be forming a major bottom after trending down for about three years.
Strong ETF Inflows and Open Interest
Quotes from Market Experts
- “The most obvious catch-up trade of this cycle” – Edward Morra, crypto trader
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