Ethereum ETFs See Positive Flows After BlackRock’s Major Inflow

The total flows into United States-based spot Ether exchange-traded funds (ETFs) have flipped to a net positive. This shift comes as BlackRock’s fund recorded its second-biggest net inflow since launching in July.

Significant Inflows for Ether ETFs

On November 12, the nine spot Ether ETFs collectively experienced $135.9 million in net inflows. This followed a record setting inflow of $295 million on November 11, according to data from Farside Investors.

These substantial back-to-back inflow days have propelled the total net flows of the nine funds to a net positive of $107.2 million. This marks the first time since their launch in July that the funds have recorded a net positive total.

Comparison with Grayscale’s Ethereum Trust

The recent net inflows have successfully countered $3.1 billion in net outflows from Grayscale’s Ethereum Trust (ETHE), which continued its decline with a loss of $33.2 million.

Performance of BlackRock’s iShares Ethereum Trust

BlackRock’s iShares Ethereum Trust (ETHA) saw its second-largest inflow since its inception, with $131.4 million entering the fund. This inflow is only surpassed by its record inflow of $266.5 million on July 23.

Nate Geraci, president of ETF Store, commented on X, noting that the BlackRock fund stands out as one of the top six ETF launches in 2024. To date, it has accumulated $1.67 billion in total inflows and has yet to experience a net outflow day.

Other Notable Inflows

• Bitwise Ethereum ETF (ETHW): $17 million inflow
• Grayscale’s Ethereum Mini Trust (ETH): $12.7 million inflow
• Minor inflows for Ark 21Shares and VanEck’s funds

This marks the fifth consecutive trading day of inflows for Ether (ETH) ETFs, with nearly $650 million entering the funds during this period.

The Intersection of Crypto and ETFs

In a separate post on November 13, Geraci remarked that there is “nothing more interesting in asset management right now than the intersection of crypto and ETFs.” He emphasized that this evolving landscape involves major players, including the largest asset managers, politicians, and regulators.

“Remember, ETFs are simply a bridge for the mainstream to access crypto. Once that bridge is fully built, there’s no going back,” he added.

Ethereum’s Recent Price Surge

Ethereum (ETH) has seen a remarkable surge of 32% over the past week, peaking just above $3,400 on November 12. Interestingly, this price increase has coincided with a market capitalization growth that exceeds the entire market cap of the fourth-largest cryptocurrency, Solana (SOL), pushing Ethereum’s market cap above $400 billion this week.

Spot Bitcoin ETFs Also Perform Well

It was also a strong day for spot Bitcoin ETFs, which recorded an aggregate inflow of $817.5 million on November 12, showcasing the growing interest in cryptocurrency investment through ETFs.

Conclusion

The recent positive inflows into Ether ETFs, particularly those driven by BlackRock’s substantial contributions, highlight a significant shift in the cryptocurrency investment landscape. As mainstream access to cryptocurrencies improves through ETFs, we can expect continued interest and investment in this emerging market.