The spot Ethereum (ETH) exchange-traded fund (ETF) recorded inflows of $295.5 million on November 11, its highest daily net flow since launch and down $29 million from positive net flows. Yes.
According to Farside Investors dataFidelity’s FETH led inflows with $115.5 million, while BlackRock’s ETHA recorded the second-highest inflows with $101.1 million.
Grayscale’s Ethereum Mini Trust recorded the third highest inflows, capturing $63.3 million during the trading day.
sunny day ahead
Bloomberg Senior ETF Analyst Eric Balchunas highlighted Grayscale’s Ethereum Trust (ETHE) has not registered an outflow in the past six days, which was taken as a sign that ETHE’s unlocking was over.
He added:
“There are sunny days ahead, but we are still miles behind the BTC ETF.”
Balchunas added that the Ethereum ETF still lags the Bitcoin (BTC) ETF, but its individual performance is noteworthy. For example, ETHA ranks as the 6th largest ETF launch by 2024 inflows among over 600 new ETFs.
Institutional support fosters growth
ETF Store CEO Nate Geraci pointed out the surprising trend of inflows of over $500 million into Ethereum ETFs in just four days following the US election. One of the key drivers of this surge is increasing institutional adoption, such as the Michigan Retirement System’s recent allocations.
In a recent 13-F filing, the Michigan State Pension Fund revealed that it invested $11 million in the Grayscale Ethereum ETF during the third quarter, making it the first public pension fund to add Ethereum to its portfolio. Notably, the Michigan fund currently holds more Ethereum than Bitcoin, with Bitcoin exposure reaching $7 million as of September 30.
Balchunas also suggested that introducing options trading on the Ethereum ETF could accelerate inflows and attract large institutional investors. However, progress in this area can be slow.
The U.S. Securities and Exchange Commission (SEC) recently postponed a decision on the matter, with some analysts, including Bloomberg, joining. James SeypartThey predict a final decision could take until April 2025.