December 12, 2024
Ether ETFs Have Best Day of Inflows Even As Bitcoin Swings Wildly
 #CriptoNews

Ether ETFs Have Best Day of Inflows Even As Bitcoin Swings Wildly #CriptoNews

Financial Insights That Matter

Key Takeaways

  • Ethereum ETFs saw their largest single-day of inflows in their short history on Thursday at $428.5 million.
  • Total inflows into the Ethereum ETFs have now surpassed $1 billion since their launch in July.
  • Inflows for the bitcoin ETFs have also been massive, with the ETFs’ collective holdings now larger than Bitcoin creator Satoshi Nakamoto’s estimated stash.

Ether (ETHUSD) exchange-traded funds (ETFs) recorded their best day of net inflows Thursday, just a day after bitcoin (BTCUSD) crossed $100,000 and then promptly fell below that level.

Ether is the native cryptocurrency of the Ethereum network and the second-largest cryptocurrency by market cap behind bitcoin. Because of its sheer size and influence, bitcoin price movements often reflect the general direction of the cryptocurrency market as a whole.

Ether ETFs raked $428.5 million in net inflows, the highest single-day inflows, according to data from Farside Investors. With yesterday’s inflows, ether ETFs have now crossed $1 billion in total inflows since their launch in July.

Ether ETF Inflows Tick Up After US Election

Ether ETFs have not been as popular as spot bitcoin ETFs that were launched in January, but investors have begun warming up to them in recent weeks.

Much of these inflows have come since Donald Trump was declared the winner of the 2024 U.S. presidential election, as the president-elect is expected to implement a regulatory environment that is much friendlier to the crypto industry.

In fact, up till election day on Nov. 5, ether ETFs saw outflows of a little over half a billion dollars, with most of that money leaving the preexisting Grayscale Ethereum Trust (ETHE). Since Nov. 6, these funds have seen investors pour a net $1.88 billion into them, with BlackRock’s iShares Ethereum Trust (ETHA) emerging as the big winner, taking in $1.2 billion of those inflows.

According to The ETF Store President Nate Geraci, these numbers are “not bad” due to factors such as ETHE’s $3.5 billion of outflows and the lack of staking available to ETF holders.

Bitcoin ETFs’ New Milestone Amid Price Volatility

Though bitcoin prices swung wildly Thursday from a high of over $101,000 to plummeting as low as $92,000, bitcoin ETFs crossed a new milestone.

According to Bloomberg senior ETF analyst Eric Balchunas, the combined bitcoin holdings of all spot ETFs surpassed those of Bitcoin creator Satoshi Nakamoto’s estimated holdings. It should be noted that it’s unclear if Nakamoto still has the private keys associated with those holdings.

Ether broke the $4,000 mark in recent trading Friday, while bitcoin remained below $100,000.

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