Originally published on: November 29, 2024
Ether exchange-traded funds (ETFs) have outperformed their Bitcoin counterparts in terms of investor interest and inflows since November 22. This surge in Ether ETF investments comes on the heels of Ethereum’s decentralized finance (DeFi) ecosystem scoring a significant victory in a US court.
According to Farside Investors data, spot Ether ETFs attracted a substantial $224.9 million in net inflows over the four trading days between November 22-27. In contrast, spot Bitcoin ETFs only saw $35.2 million in net inflows during the same period, primarily due to heavy outflows on November 25.
This increased investor interest in Ether ETFs coincides with an almost 8% rally in the price of Ether (ETH), which surged to over $3,590 in the past seven days. Industry experts attribute this price gain to Ethereum-based Tornado Cash’s recent court victory in the US and speculations of a more crypto-friendly Securities and Exchange Commission (SEC) under the potential leadership of Paul Atkins.
As Ether continues to outperform Bitcoin, there is a possibility that US Ether funds may surpass spot Bitcoin ETFs in net inflows by the end of the week. Despite a recent slowdown, spot Bitcoin ETFs have had a record-breaking month in November, with over $6.2 billion in net inflows, including an impressive $3.1 billion last week.
Markus Thielen, founder of 10x Research, believes that Tornado Cash’s court victory and speculations about Paul Atkins leading the SEC have propelled Ethereum’s price rally. This surge in Ether’s price could also be seen as a “catch-up trade” as the cryptocurrency has lagged behind Bitcoin and Solana in this bull cycle.
Moreover, leveraged spot Ether ETF demand has surged by 160% since the US election, indicating growing investor interest in Ethereum. With increasing momentum and favorable regulatory developments, Ethereum seems poised for a strong performance in the near future.
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