Ethereum Spot ETFs Attract Record $295 Million Daily Inflows – Is ETH Set For New Highs?
13 November 2024 - 10:30AM
NEWSBTC
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.
Related Reading: Ethereum Could Be Set To Explore New Highs As
On-Chain Metrics Light Up 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:
Survey Finds Almost 70% Of Ethereum Institutional Investors Engaged
In ETH Staking 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.
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. 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. 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. Featured image from Unsplash,
Charts from X.com, DefiLlama.com, and TradingView.com
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