Record Inflows for Spot Ether ETFs
Spot Ether exchange-traded funds (ETFs) in the United States experienced an unprecedented surge, with daily inflows reaching a remarkable $332.9 million on Friday. This figure not only marks a new high in investor interest but also surpasses the previous record of $295.5 million, which was set on November 11, by $37.4 million. The significant inflows indicate a growing enthusiasm among investors toward Ether-based ETFs.
BlackRock’s Impact on Ether ETFs
BlackRock, recognized as the world’s largest asset manager, significantly contributed to this record inflow, delivering an impressive $250.4 million to the total on November 29. This remarkable participation underscores BlackRock’s pivotal role in the burgeoning market for Ether ETFs, specifically through its iShares Ethereum Trust (ETHA), which has accumulated over $2 billion in inflows since its launch on July 23. The swift increase in inflows coincided with Ether’s price rise of 1.88%, reaching $3,662 on the same day, according to data from CoinMarketCap.
Ether ETFs Outshine Bitcoin Counterparts
In a noteworthy development, Ether ETFs surpassed Bitcoin ETFs in terms of daily inflows for the first time ever. On the same day, spot Bitcoin ETFs recorded inflows of $320 million, falling just short of Ether intake. Crypto analysts and commentators observed this critical moment, with Ethereum Vibin highlighting that “ETH ETF flows have flipped BTC ETF flows for the first time.” Felix Hartmann, founder of Hartmann Capital, noted the trend as indicative of Wall Street’s increasing interest in alternative assets, suggesting that this pattern marks the commencement of an “alt rotation” in the market.
Broader Trends and Legal Victories
The inflows into Ether ETFs are part of a broader narrative where Ether consistently exhibits stronger performance relative to Bitcoin ETFs. Between November 22 and 27, spot Ether ETFs saw net inflows of $224.9 million, significantly outpacing Bitcoin ETFs, which only managed $35.2 million. This could be further bolstered by Ethereum’s recent legal victory in a U.S. court that positively impacts the decentralized finance (DeFi) ecosystem, thereby strengthening investor confidence in Ether.
Ethereum Dominates Tether Market
In addition to the success of Ether ETFs, Ethereum has regained its status as the leading blockchain for Tether (USDT), surpassing Tron with a supply of $60.3 billion. This change comes after a week where USDT on Ethereum increased by 9.3%, while Tron observed a 1.5% decline, dropping its supply to $58.1 billion. This resurgence marks Ethereum’s return to dominance for the first time since August 2022, with the overall USDT supply hitting an all-time high of $132.9 billion—an encouraging sign for the broader cryptocurrency sector.
The Importance of Stablecoins and Future Outlook
Stablecoins like Tether play a crucial role in maintaining trading liquidity and facilitating capital flow across the crypto ecosystem. Ethereum’s prominence in this area can be attributed to its widespread adoption by financial institutions for tokenizing US dollar-backed assets. On the other hand, Tron remains popular in high-inflation regions, thanks to its low fees and rapid transaction speeds, which are beneficial for efficient saving in stablecoins like USDT.
Ethereum solidified its lead in USDT supply on November 21, with the gap further expanding on November 23 when Tether minted $2 billion USDT on Ethereum compared to just $1 billion on Tron. Other notable blockchains in the USDT supply rankings include BNB Chain with $4.58 billion, Arbitrum at $3.09 billion, and Avalanche with $1.31 billion, indicating a diversified landscape within the stablecoin market.