TL;DR
- Ethereum ETFs in the U.S. recorded a net inflow of $135.9 million on November 12, led by BlackRock.
- The total Ethereum ETF market reached $3.1 billion in net inflows.
- ETH surged 22% in price, driven by institutional interest and a favorable market outlook.
In a significant move for the cryptocurrency market, Ethereum-based exchange-traded funds (ETFs) recorded a notable increase in net inflows, totaling $135.9 million on November 12, with the majority coming from BlackRock.
This figure marks the second-highest inflow for Ethereum ETFs since their debut in July and signals a crucial shift in the market direction for these assets.
According to data from Farside Investors, BlackRock’s iShares Ethereum Trust led this recent inflow, amassing $131.4 million in a single day.
With these inflows, the Ether ETF market has reached an important milestone, accumulating a total of $3.1 billion in net flows, while BlackRock’s fund has established itself as one of the most successful ETF launches of 2024.
This fund has maintained consistent inflows since its inception, reaching $1.67 billion with no net outflow days, underscoring investor confidence in this vehicle as a means of accessing the Ethereum ecosystem.
As Nate Geraci, president of ETF Store, put it, ETFs represent a “bridge” that facilitates access for traditional investors to cryptocurrency markets, noting that once this bridge is built, it will be irreversible.
The crypto market momentum and its effect on Ethereum price
Interest in Ethereum ETFs also aligns with a 22% increase in the price of Ethereum, which reached $3,150 on November 13, lifting its market cap above $400 billion. This rally has been fueled by various factors, including institutional investor interest and the rising volume of Ethereum derivatives.
Following the recent election of Donald Trump, perceived as favorable by the crypto market, ETH saw a significant increase in open interest in futures, which rose from 9.8 million to 13 million ETH in just one week, according to CryptoQuant data.
The favorable environment in the U.S., driven by a potentially more crypto-friendly administration, has generated positive expectations in digital asset markets.
This trend has strengthened ETH position as a fundamental pillar in the crypto world, attracting both retail investors and major institutions who see ETFs as a safe and regulated way to enter this market.
Meanwhile, other Ethereum ETF options, such as the Bitwise fund, also showed upward movement with an inflow of $17 million, while Grayscale’s Ethereum Mini Trust attracted $12.7 million in new funds.
This growth in the ETF market reflects a strong demand for investment products in crypto assets that provide investors access without the need to directly manage cryptocurrencies, cementing the role of ETFs as entry vehicles into the market.
