Ethereum ETF records largest inflow, surpassing Bitcoin ETF
Ethereum-ETFs gain popularity
The U.S. spot Ethereum-ETF market recorded a historic inflow on November 29. According to Farside, nine Ethereum funds collectively attracted $332.9 million, surpassing the previous record of $295.5 million set on November 11 by $37.4 million.
As reported by Cointelegraph, the largest inflow of $250.4 million was recorded by BlackRock's iShares Ethereum Trust (ETHA). In total, the fund has attracted over $2 billion since its launch on July 23.
Many analysts noted that the Ethereum-ETF inflows exceeded those of spot Bitcoin-ETFs, which brought in $320 million on the same day. Felix Hartmann, founder of Hartmann Capital, sees this as a signal that Wall Street is officially engaging in the "altcoin rotation."
This marks the first instance where spot Ethereum-ETF inflows outpaced those of Bitcoin-ETF on days when both categories posted positive results. Additionally, spot Ethereum-ETFs have consistently shown positive inflows recently, while spot Bitcoin-ETFs often experienced outflows.
What is an Ethereum-ETF?
An Ethereum-ETF is an exchange-traded fund tied to the price of Ethereum (ETH). These funds allow investors to access the asset without directly purchasing it on cryptocurrency exchanges. Instead, investors buy shares of the fund, which are traded on traditional stock exchanges, much like shares of other assets.
This simplifies the investment process, eliminates the need to manage cryptocurrency wallets, and enhances security. Ethereum-ETFs can be of two types: spot ETFs backed by actual ETH and futures ETFs based on the prices of future contracts.
Notably, on November 14, Ethereum-ETFs saw positive inflows for the first time, coinciding with the launch of a new funding rate.
