Ethereum is riding a post-election momentum, with billions of dollars in outflows that dampened investor enthusiasm when ETFs launched this summer.
Accumulated net income for spot Ethereum ETFs turned positive on Tuesday, reaching $94 million, according to SoSo Value. Data. Nine investment products for Ethereum, representing the total amount of money taken so far, rose to $238 million on Thursday.
When spot Ethereum ETFs launched in July, that was the baseline. Ugly. Greyscale Ethereum Trust (ETHE) saw $1.7 billion in losses in its first five trading days, with the price of Ethereum falling to $3,400, according to SoSo Value, which is hemorrhaging cash. Data.
Analysts It is given ETE's high flow to production ratio is relatively high, making it more expensive to hold than alternatives. Soon the crypto market entered the middle Macro jitters and the unrevolving yen.”Carry business” which made the world market out of control.
“The launch of Ethereum ETFs came at a difficult time,” said Matt Mena, research analyst at 21Shares. Decrypt. But now the hope is fully restored.
Investors pulled $3.2 million from spot Ethereum ETFs on Thursday, marking a record-setting six-day period. Investors poured $796 million into the product on Election Day, making it the longest and largest inflow on record.
Investors seem to be comfortable with Ethereum following Donald Trump's White House victory, Mena said, pointing to the president-elect's pro-crypto administration prospects. At the same time, he crypto-friendly members of Congress “should also encourage more developers to develop applications on top of the Ethereum network” amid a new tone on Capitol Hill.
Chris Yin, CEO of Plume, said, “As the US introduces a more favorable regulatory regime, TradFi institutions and retail crypto traders feel more confident about the prospects and strength of digital assets. Decrypt. “We're starting to see a happy ending.”
According to FalconX head of research, David Launt, the prospects of favorable crypto policy and regulation are creating excitement around Ethereum. For example, he said. Decrypt A regulatory framework for a stable coin proves one of Ethereum's use cases.
Looking at Bitcoin ETFs in place Billions of dollars But after Trump won, he said, there was an influx of revenue. Decrypt The recent wave of inflows for Ethereum ETFs may also be part of the result of spillovers between institutional and retail investors.
“Besides Bitcoin, there are going to be people who are going to start looking around and seeing what's going on in this industry,” Launt said. “And probably the first thing we're going to deal with is Ethereum, which is the only other crypto asset that has an approved ETF position right now.”
Launt added that there is a degree of flexibility that can affect flows. He said that when the price of Ethereum rises, investors are more likely to pay attention to ETFs and allocate to them.
On Election Day, the price of Ethereum reached about $2,400. As of Tuesday, the price jumped 41 percent to $3,400, but has since recovered to around $3,100.
Overall, ETHE outflows have overshadowed the launch of spot Ethereum ETFs, but the launch has been very successful relative to the time they've outpaced that fund, Launt said. The BlackRock Bitcoin ETF alone has pulled in $1.7 billion, while seven others have collectively pulled in $1.8 billion.
“It's important to remember that $3.5 billion isn't bad at all for an ETF that launched four months ago,” he said.
Edited by Andrew Hayward.
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