Ether ETFs See Surge in Inflows Post-U.S. Election; Bitcoin Funds Continue to Dominate

In the aftermath of the 2024 U.S. presidential election, the cryptocurrency market has seen renewed momentum, particularly in exchange-traded funds (ETFs) tracking Ether (ETH). On November 6, 2024, spot Ether ETFs experienced their largest inflows in over six weeks, signaling a potential shift in investor interest. While Bitcoin-related ETFs continue to lead the charge, the surge in Ether ETF inflows highlights a growing appetite for Ethereum-based investments. Here’s a closer look at the latest developments in the crypto ETF market and what they signal for the future.

Spot Ether ETFs saw a notable surge in inflows on November 6, 2024, with a total of $52.3 million in new investments. According to Farside Investors, this marked the highest inflows for these funds since September 27, 2024. However, despite this uptick, the amount is still modest when compared to the inflows seen in spot Bitcoin ETFs.

The day’s largest inflows were concentrated in two main funds:

• Fidelity Ethereum Fund, which attracted $26.9 million in new capital.
• Grayscale Ethereum Mini Trust, which saw $25.4 million in inflows.

Despite these gains, the leading Ether ETF, BlackRock’s iShares Ethereum Trust, saw a net zero flow, suggesting that larger institutional investors remain cautious. Seven other spot Ether ETFs experienced no new inflows during the same period.

Grayscale’s Continued Struggles

While some Ether funds benefited from the election-day optimism, the broader picture for Ethereum ETFs remains mixed. The overall net aggregate for all spot Ether ETFs is still in the red, with a $490 million outflow, primarily due to continued withdrawals from Grayscale’s high-fee ETHE fund. Grayscale’s ETF has seen a significant decline, losing $3.1 billion in assets under management since it transitioned to a spot ETF model in July 2024. This trend points to investor concerns about high fees and underperformance in the Ethereum market.

While Ether funds enjoyed a moment of growth, spot Bitcoin ETFs continued to dominate the market. On the same day, 11 U.S. spot Bitcoin ETFs recorded a net inflow of $621.9 million, reversing a three-day streak of outflows. Interestingly, even BlackRock’s iShares Bitcoin Trust, which saw its second consecutive day of outflows, managed to maintain significant trading volume, with $4.1 billion traded—the highest in its history.

The largest inflows on November 6 came from Fidelity’s Wise Origin Bitcoin Fund, which saw a massive $308.8 million infusion, marking its biggest single-day gain since June 2024. Additionally, Bitwise, Ark 21Shares, and Grayscale also saw over $100 million in inflows each, reflecting the continued strength and investor confidence in Bitcoin.

Crypto Market Surge: Bitcoin Hits New Heights

The overall spot crypto market experienced a 4% increase on November 6, 2024, pushing the total market capitalization to $2.64 trillion. Bitcoin reached a new all-time high, surpassing the $76,000 mark, further fueling investor enthusiasm. As of November 7, Ether also experienced a notable 10% surge, hitting an intraday high of $2,872, its highest price since early August 2024, according to CoinGecko.

The post-election surge in spot Ether ETF inflows, particularly for funds like Fidelity’s Ethereum Fund and Grayscale’s Ethereum Mini Trust, suggests a growing interest in Ethereum as a serious investment vehicle. However, despite this, the dominance of Bitcoin-related ETFs continues to overshadow the Ether funds, with Bitcoin seeing larger inflows and breaking new price records.

While Ethereum is showing signs of awakening, as evidenced by its recent price gains, Bitcoin remains the undisputed leader in the crypto ETF space. As the crypto market evolves, it will be interesting to see whether Ether can maintain this momentum or if Bitcoin will continue to outshine its rival.

For now, both assets are seeing strong investor interest, with the broader crypto market poised for continued growth as political and economic events continue to shape market sentiment.