Spot Ether ETFs Achieve Record Inflows, Surpassing Bitcoin ETFs: 'Alt Rotation Has Begun'

Spot Ether ETFs in the United States have hit a new milestone, setting a record for daily inflows that surpass those of spot Bitcoin ETFs by a notable $12.9 million. On November 29, 2024, these Ethereum-based ETFs saw an influx of $332.9 million, surpassing the previous record of $295.5 million set just weeks earlier, on November 11. This marks a significant shift in investor behavior as Ether ETFs gain traction.

BlackRock Leads the Charge with Over $250 Million in Inflows

A significant portion of these impressive inflows can be attributed to BlackRock, the world’s largest asset manager, which was responsible for a whopping $250.4 million of the total inflows on November 29. BlackRock’s iShares Ethereum Trust (ETHA), launched in late July 2024, has now accumulated over $2 billion in investments, signaling a growing institutional interest in Ethereum. Nate Geraci, president of ETF Store, highlighted this achievement, noting the rapid adoption of the product since its inception.

Signs of Ethereum's Growing Institutional Appeal

Crypto trader Pentoshi remarked that the recent surge in Ether inflows marks an important milestone for Ethereum, as capital flows into the asset increase and market participants start absorbing selling pressure. "Now we have early signs of this happening in ETH, as the flows begin to finally pick up, and sellers begin to get absorbed," Pentoshi commented on social media, signaling optimism about the future of Ethereum.

This surge in interest has not gone unnoticed in the crypto community. Several analysts observed that spot Ether ETFs are now attracting more capital than Bitcoin ETFs for the first time, highlighting the shift toward Ethereum as the next big play in the digital asset space.

Ethereum's Momentum Outpaces Bitcoin

On the same day, spot Bitcoin ETFs recorded $320 million in inflows, yet the total amount was still outpaced by Ethereum’s inflows, with Ether ETFs gaining a $12.9 million advantage. This marks a notable shift in the market, as Ether has now begun to eclipse Bitcoin in investor preference on days when both assets see inflows.

This trend follows a broader pattern over the past several days, where spot Ether ETFs have consistently seen positive inflows while spot Bitcoin ETFs have experienced occasional outflows. Between November 22 and 27, Ether ETFs saw $224.9 million in net inflows, while Bitcoin ETFs recorded a modest $35.2 million in net inflows, driven largely by a significant outflow on November 25. The difference in these figures underscores the growing demand for Ethereum as an investment vehicle.

The ‘Alt Rotation’ Is Underway

Felix Hartmann, founder of Hartmann Capital, suggests that this shift is a clear signal that Wall Street is increasingly turning its attention to Ethereum as part of what he refers to as an "alt rotation." The move from Bitcoin-focused investments to a more diversified approach, including Ethereum, reflects changing dynamics within institutional crypto investments.

Ethereum-focused commentary, including from Ethereum Vibin on social media, has pointed out that "ETH ETF flows have flipped BTC ETF flows for the first time," marking a crucial development for Ethereum’s institutional adoption.

Looking Ahead: Ethereum’s Growing Appeal

The surge in Ether ETF inflows, driven largely by institutional players like BlackRock, is a strong signal of the increasing institutional adoption of Ethereum. With significant positive sentiment building around Ethereum’s decentralized finance (DeFi) ecosystem, including recent legal victories in the United States, the altcoin may continue to see increasing investor interest in the months ahead.

As market dynamics evolve, the growing appeal of Ether and the “alt rotation” could reshape the broader crypto landscape, offering new opportunities for investors and traders alike.