Ethereum ETF surged on renewed interest
Spot Ethereum ETFs saw $333 million in inflows on Friday, November 29, reflecting institutional interest in the second largest cryptocurrency. Experts attribute this renewed interest to expectations for clearer crypto regulations in the US and a positive outlook on DeFi.
The top 10 Ethereum ETFs in the US posted $333 million in inflows Friday, following a positive week of inflows totaling $466.5 million, outpacing Bitcoin's $318.60 million on Friday and posting a weekly net inflow of $136.5 million.
With Ethereum spot ETFs approved by the SEC in July 2024, the crypto price has lagged behind Bitcoin and the broader crypto market despite industry clamor for approval. Since the approval of the Bitcoin ETF in January 2024, the price of Ethereum has fallen by approximately 32% in the 15 days since its approval, compared to only 15.02% against Bitcoin.
Renewed interest in Ethereum
Despite Ethereum's underperformance, recent data shows demand is increasing as institutions and traders turn their eyes to the crypto.
According to the Future of Finance report from Sygnum Digital Bank, which measures market sentiment and behavior of professional and institutional investors, 90% of the 405 traditional investors surveyed are currently invested in blockchain protocol coins (mostly Layer 1 coins).
The report also found that among respondents who already hold crypto, 31% plan to increase their allocation in Q4-2024 and 32% plan to grow their portfolio in the next six months.
Of the respondents who do not currently hold cryptocurrencies in their portfolios, 43% plan to increase allocations within the next year. Overall, 79% of all respondents plan to increase placements in the next 6 months.
Ethereum open demand will grow
CME OI history for Ethereum shows that open interest has been increasing since November 4th and is at $3.01 billion as of press time, indicating more institutional interest in Ethereum.
Ethereum has been on a high since hitting a yearly low of around $2,100 in August and is now close to a yearly high of around $4,100.
Ethereum is trading at $3,600 at the time of writing, close to a yearly high.
