Record $432 Million Flows into Ether ETFs as Cryptocurrency Rallies

Spot Ether exchange-traded funds (ETFs) in the United States have achieved a major milestone, with a record $431.5 million in inflows on December 5, marking the largest single-day influx since their launch in July. This influx, the latest in a string of positive trading days, caps nine consecutive days of net inflows for the cryptocurrency.

Surge in Ether ETF Inflows

The nine spot Ether ETFs in the U.S. have seen a dramatic surge in investments, with over $1.3 billion in inflows over the past two weeks as Ether (ETH) rallied toward the $4,000 mark. The December 5 record-breaking inflow surpasses the previous high of $333 million set on November 29.

The total inflow for the day brings the overall net influx to more than $1 billion, signaling a continued upward momentum in the Ether market. Notably, Grayscale’s Ethereum Trust (ETHE) has experienced slower outflows, further fueling optimism among investors.

Contributions from Major Funds

The BlackRock iShares Ethereum Trust (ETHA) led the charge on December 5, securing an impressive $295.7 million in inflows, bringing its total to $2.3 billion. Fidelity’s Ethereum Fund (FETH) saw $113.6 million in new investments, while Grayscale’s Ethereum Mini Trust (ETH) received $30.7 million. The Bitwise Ethereum ETF (ETHW) saw $6.6 million in inflows.

Despite the overall positive momentum, Grayscale’s Ethereum Trust (ETHE) experienced a $15.1 million outflow, while the other funds remained largely stable with zero net flows.

Strong Performance of Spot Bitcoin ETFs

Spot Bitcoin ETFs also saw strong performance on December 5, with a total net inflow of $747.8 million across 11 funds. BlackRock’s iShares Bitcoin Trust (IBIT) led the Bitcoin ETF sector with an inflow of $751.6 million, contributing significantly to the overall figure. Meanwhile, Grayscale’s Bitcoin Trust (GBTC) saw an outflow of $148.8 million.

BlackRock’s Bitcoin ETF, in particular, has seen a remarkable $2.5 billion in inflows over the last five trading days, bringing its total inflow since launch to a staggering $34 billion.

Ether’s Price Surge and Market Outlook

The surge in Ether ETF inflows comes as the price of Ether has gained 16% over the last two weeks. On December 5, Ether hit an eight-month high of $3,946, according to CoinGecko. The cryptocurrency’s impressive performance has also led to a notable shift in its market dynamics, with Ether’s strength relative to Bitcoin increasing.

The ETH/BTC ratio has risen by 14.5% in the past month, currently sitting at 0.04. Analysts suggest that this ratio could continue to increase over the next 6 to 12 months, signaling a potential period of outperformance for Ether compared to Bitcoin.

A Growing Trend

The continued growth in Ether ETF inflows underscores the increasing interest in Ethereum as a leading blockchain platform. With strong backing from major investment firms like BlackRock and Fidelity, the Ether ETF market looks poised for further expansion as the cryptocurrency ecosystem continues to evolve. As Ether maintains its upward momentum, the future for these funds appears increasingly promising.