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Ethereum Spot ETFs Attract Record $295 Million Daily Inflows – Is ETH Set For New Highs?
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Ethereum Spot ETFs Attract Record $295 Million Daily Inflows – Is ETH Set For New Highs?

Ash Tiwari
Ash Tiwari
7 months ago
3 mins read
ethereum

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Ethereum (ETH) appears to be finally waking from its slumber, surging nearly 37% in the past week following Bitcoin’s (BTC) all-time-high (ATH) rally.

Spot Ethereum ETFs Record Daily Inflows

Ethereum, the second-largest cryptocurrency with a market cap of approximately $404 billion, is now gaining ground on BTC, with the platform’s ETH token jumping more than 35% over the past week.

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Ethereum Could Be Set To Explore New Highs As On-Chain Metrics Light Up

7 months ago

While the broader digital assets market has been buoyed by Donald Trump’s victory in the 2024 US presidential election, additional factors may also be driving the recent industry boom, especially for ETH.

A key data point is the substantial inflow of funds into spot ETH ETFs. On November 11, US-based spot ETH ETFs attracted a record $295 million in daily inflows, the highest amount to date.

In comparison, the previous peak for daily inflows into spot ETH ETFs was $106 million, recorded on the first day these ETFs launched in July 2024.

According to data from SoSoValue, the record inflows were led by Fidelity’s FETH ETF, which drew in $115.48 million. 

BlackRock’s ETHA followed with $101.11 million, Grayscale’s ETH with $63.32 million, and Bitwise’s ETHW with $15.57 million.

At the time of writing, the total value of net assets held across various spot ETH ETFs stands at $9.72 billion, representing just over 2.41% of Ethereum’s total market cap. Meanwhile, cumulative net outflows from all spot ETH ETFs amount to $41.30 million.

ETH Price Action And Resurgence In DeFi

Renewed interest from institutional investors in Ethereum ETFs amid record daily inflows appears to be contributing positively to ETH’s price action.

Related Reading

Ethereum

Survey Finds Almost 70% Of Ethereum Institutional Investors Engaged In ETH Staking

8 months ago

Throughout much of 2024, ETH lagged in price performance among major cryptocurrencies such as BTC and Solana (SOL). However, Q4 2024 holds potential for a dramatic turnaround in ETH’s momentum.

Analysis shared by Leon Waidmann, Head of Research at Onchain Foundation indicates that ETH staking levels are at an ATH, while the token’s reserves on crypto exchanges is heading toward record lows. 

This combination of record-high staking levels and reduced supply on exchanges suggests a potential supply squeeze, which could trigger a parabolic rally for ETH.

ethereum supply
Source: Leon Waidmann on X

Additionally, the ETH/BTC ratio seems to be recovering after prolonged losses, with the trading pair rising from 0.034 to 0.040 before dipping to 0.037 at the time of writing.

ethbtc
The ETH/BTC trading pair has recovered some of its recent losses on the daily chart | Source: ETHBTC on TradingView.com

The next major resistance for this pair lies around 0.040, and a successful breakout from this level could lead to more gains for ETH over BTC. At press time, ETH sits about 32% below its ATH value of $4,878 recorded in November 2021.

Further, Ethereum’s decentralized finance (DeFi) activity seems to be picking steam. Data from DefiLlama shows that the total value locked (TVL) across Ethereum-based DeFi protocols currently sits at $62.36 billion, up from about $24 billion in November 2023.

ETH DeFi
Source: DefiLlama

Over half of this TVL is tied to the ETH staking platform Lido, which holds close to $33 billion. Lido is followed by the DeFi lending protocol Aave with $15.21 billion and EigenLayer with $14.57 billion.

That said, concerns remain regarding ETH’s “ultrasound money” narrative due to the token’s high issuance rate. At press time, ETH trades at $3,291, up 3.1% in the past 24 hours.

ethusdt
ETH trades at $3,291 on the daily chart | Source: ETHUSDT on TradingView.com
Featured image from Unsplash, Charts from X.com, DefiLlama.com, and TradingView.com
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Ash Tiwari
Ash Tiwari

Ash Tiwari

Ash is a dedicated crypto researcher and blockchain enthusiast with a passion for diving deep into the evolving world of decentralized technologies. With a background in writing and a natural curiosity for how digital assets are shaping the future, he has immersed himself in various sectors of the cryptocurrency space, including decentralized finance (DeFi), NFTs, and liquidity mining. His journey into crypto started with a desire to fully understand the technology behind it, leading him to explore and engage with these systems firsthand.

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Ash’s approach to DeFi goes beyond surface-level research as he actively participates in decentralized protocols, testing their functionality to gain a deeper understanding of how they operate. From experimenting with staking mechanisms to exploring liquidity mining strategies, he is hands-on in his exploration, which allows him to provide practical, real-world insights that go far beyond theoretical knowledge. This immersive experience has helped him develop a comprehensive grasp of smart contracts, token governance, and the broader implications of decentralized platforms on the future of finance.

In the NFT space, Ash’s interest is driven by the technology’s potential to reshape ownership and creativity in the digital age. He has explored various NFT projects, gaining insights into how these digital assets function within different ecosystems. His focus is on understanding the evolving relationship between creators and communities, as well as the innovative uses of blockchain technology to establish authenticity and provenance in the digital world. Ash’s research in this area often touches on the intersection of culture, technology, and community-driven projects.

A key area of his expertise lies in liquidity mining, where he has engaged with various decentralized platforms to understand how liquidity provision contributes to the functionality and security of DeFi ecosystems. Ash’s hands-on involvement has allowed him to analyze the risks, rewards, and broader implications of liquidity pools, giving him a well-rounded perspective on this integral part of DeFi. His understanding of risk management and protocol design allows him to provide insights into how these systems can be navigated effectively, with an emphasis on both opportunity and caution.

When it comes to communicating these complex topics, Ash’s writing is grounded in clarity and depth. He excels at breaking down intricate blockchain concepts into easily digestible information for a wide audience. Whether explaining the workings of decentralized exchanges or outlining the future potential of blockchain technology, Ash ensures that his content is accessible to both those new to the space and experienced participants looking for deeper insights.

Beyond DeFi and NFTs, Ash explores a wide array of emerging blockchain applications. His research spans areas like cross-chain technologies, decentralized governance, and blockchain’s potential to integrate with traditional finance. He is continuously learning and adapting to the latest developments, ensuring that his insights are both timely and relevant. His interest extends to how these technologies are creating new possibilities for decentralization, transparency, and trust in a variety of industries.

Ash’s commitment to engaging with the crypto space firsthand gives him a unique perspective that goes beyond what can be learned from research alone. His practical involvement allows him to stay ahead of the curve, offering readers and enthusiasts a clear and comprehensive understanding of the rapidly evolving world of blockchain. Whether delving into the technical mechanics of DeFi or exploring the cultural impact of NFTs, Ash’s approach is always rooted in curiosity, research, and a desire to make this technology accessible to all.

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