Historic record for spot ETH ETFs

Yesterday, in a single day, the spot ETFs on ETH overall recorded inflows of more than 295 million dollars. 

This is the all-time high, so far, regarding daily inflows on Ethereum ETFs. 

The half flop of the ETFs on ETH

The spot ETFs on ETH on the US exchanges were launched at the end of July, that is, three and a half months ago. 

In this period, they have overall recorded net outflows totaling approximately 30 million dollars. 

So for now it has been a half flop, even though things have been changing lately. 

The fact is that the main one of these ETH, Grayscale’s ETHE, is actually a fund that was created years ago and was converted into an ETF only this year. Previously, ETHE was unable to liquidate the excess ETH, and thus over the years it accumulated too many ETH compared to its market value.

When it became an ETF, it was finally able to get rid of the excess ETH, so much so that from the end of July until now it has recorded total outflows of more than 3.1 billion dollars. 

Such outflows have not been completely offset by an equal number of inflows into the new spot ETH ETFs, even though since the day of Trump’s victory things have changed.

The turning point of Ethereum (ETH) ETFs

From November 6 to yesterday, for four consecutive stock market sessions (on weekends traditional stock markets are closed), all spot ETFs on ETH recorded daily net inflows, including ETHE. 

Therefore, the climate regarding this has completely changed, so much so that November 4th had closed with a total outflow since the end of July of almost 5 and a half billion dollars. 

Instead, in the last four consecutive sessions alone, total inflows of approximately 5.1 billion dollars have been recorded. 

This phase of great growth for spot ETH ETFs, eagerly awaited for months, reached its peak yesterday with the all-time record of daily total inflows, 295.5 million dollars of which 63.3 on Grayscale’s mini-ETF. 

Before today, since the spot ETH ETFs landed on the markets, nothing like this had ever happened. 

The price of Ethereum

On the other hand, it was precisely Ethereum that awakened in the crypto markets.

After reaching the annual high of 2024 at 4,100$ in March, the price of ETH had fallen below 2,200$ at the beginning of September. 

On the day of the USA presidential elections, November 5th, it had just risen to $2,400, but from the following day, it started a true bull run culminating today at about $3,400. 

If the price performance of the last week is 35%, the annual highs are still distant. 

Moreover, the all-time highs are still those of November 2021, when it exceeded $4,800. The current price is still 33% lower than that peak. 

Therefore, Ethereum is not doing as well as Bitcoin in the crypto markets, although this is not unusual because when a crypto bullrun starts, it is generally Bitcoin that takes off, draining capital from altcoins. Later on, Ethereum tends to outperform Bitcoin, but first, the BTC run needs to slow down a bit.

The records of spot Bitcoin (BTC) ETFs

In these days, even the ETFs on Bitcoin are reaching new records, but with numbers significantly higher than those of Ethereum. 

The record of daily inflows was recorded on November 7, not at 295 million but even at 1.4 billion dollars. 

Just consider that cumulatively, from January until today, the total overall inflows into spot BTC ETFs have been nearly 27 billion dollars, with an average daily inflow of almost 128 million. 

But it is the trading volumes that make the most impression. 

Yesterday, only IBIT, BlackRock’s Bitcoin ETF, surpassed 4.7 billion dollars in daily trading volume, while ETHA, BlackRock’s Ethereum ETF, stopped at 380 million, less than a tenth.

At this moment, not only does Bitcoin dominate the crypto markets, but it also dominates the traditional stock exchanges, among the crypto assets. 

Just consider that the overall market capitalization of all Bitcoin ETFs in the USA has reached 84 billion dollars, which is two-thirds of those on gold, existing for a couple of decades. All this in less than a year. 

Today, however, the market seems less overheated than yesterday, perhaps because the wave of FOMO has now passed. It cannot be ruled out, however, that FOMO may return, also because being an emotion it comes and goes at the speed of light.