Ethereum (ETH) spot exchange traded funds (ETFs) in America witnessed a record-breaking surge in daily inflows this past Friday, reinforcing the growing interest in the second most valuable digital currency. Ethereum has been playing catch-up after trailing behind Bitcoin (BTC) in performance this year.
The combined funds from nine products hit a mark of $332.9 million in net inflows during Friday’s truncated trading hours, according to data collected by Farside Investors. BlackRock’s iShares Ethereum Trust (ETHA) and the Fidelity Ethereum Fund (FETH) led the pack, drawing in $250 million and $79 million respectively in new funds.
The close of Friday marked the fifth consecutive session of net inflows for this group, wrapping up the second most successful week with $455 million in net inflows, based on SoSoValue’s data. Due to Thanksgiving, the traditional US markets were closed, making it a shorter week.
Notably, Ether ETFs surpassed Bitcoin spot counterparts in terms of inflows, amassing $320 million on Friday, while Bitcoin saw net outflows for the week.
After losing favour among investors and underperforming against Bitcoin in terms of price and ETF flows this year, Ether has recently experienced a revival. Interest in altcoins and decentralized finance (DeFi) applications has been renewed following Donald Trump’s election victory.
Compounding the strong ETF inflows, the open interest for ETF futures on the institution-focused Chicago Mercantile Exchange (CME) soared to record-breaking levels of nearly $3 billion, as per CoinGlass data. This highlights the growing positive sentiment towards this digital asset.
Related article: Is Ethereum’s ETH on the decline? Rising Metrics Suggest Otherwise
Crypto trader Edward Morra highlighted the significant ETF inflows, dubbing ETH as “the most noticeable catch-up trade of this cycle,” in a recent post on Saturday.
Despite Bitcoin’s consolidation below $100,000 this week, ETH has demonstrated relative strength against the leading cryptocurrency. ETH’s price reached a five-month peak of over $3,700 on Saturday, outpacing BTC both weekly and monthly, although it is still lagging on a year-on-year basis, as per CoinDesk Indices data.
Market strategist at LMAX Group, Joel Kruger, suggested on Friday that the ETH-BTC ratio might be forming a significant bottom after trending downwards for about three years.
“The more favourable outlook for the DeFi sector – thanks to a friendlier regulatory environment with the incoming US administration – is a key factor driving the shift in sentiment. Investors now see a clearer path towards investing in Ethereum,” stated Kruger.
