Originally published on: November 29, 2024
In a surprising turn of events, Ether exchange-traded funds (ETFs) have outperformed their Bitcoin counterparts, attracting more investment since Nov. 22. This trend comes as Ethereum’s decentralized finance (DeFi) ecosystem celebrates a significant court victory in the US.
According to Farside Investors data, spot Ether ETFs have seen a substantial $224.9 million in net inflows over the past four trading days, overshadowing the $35.2 million inflows into spot Bitcoin ETFs. This surge in Ether investments coincides with an impressive 8% price rally, pushing Ether above $3,590 in the last week.
Industry experts attribute the boost in Ether’s price to the recent legal win for Ethereum-based Tornado Cash and rumors of Paul Atkins potentially leading a more crypto-friendly Securities and Exchange Commission (SEC), replacing Gary Gensler.
The ongoing week could mark the first time US Ether funds surpass spot Bitcoin ETFs in net inflow, signaling a potential shift in investor sentiment. Despite Bitcoin’s recent 2% dip to $96,780, Ethereum’s rise has narrowed the price ratio to 0.037 BTC.
While spot Bitcoin ETFs have had a record-breaking month with over $6.2 billion inflows in November, Ethereum’s dominance in the DeFi space is gaining momentum. The prospect of a DeFi renaissance under a Trump presidency, driven by stronger support for decentralized finance, adds further bullish sentiment to the Ether rally.
As Ethereum plays catch-up in the current bull cycle, analysts predict a correction before a potential rally to $20,000 by 2025. With leveraged spot Ether ETF demand surging, the outlook for Ethereum remains optimistic amidst a changing regulatory landscape and evolving market dynamics.
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