Spot Ethereum (ETH) exchange-traded funds (ETFs) accumulated $295.5 million in inflows on November 11, their highest daily positive net flow since launch, earning them $29 million in positive net flows.
According to Farside Investors dataFidelity’s FETH dominated inflows, recording $115.5 million, while BlackRock’s ETHA saw the second highest inflow at $101.1 million.
Grayscale’s Ethereum Mini Trust saw the third highest inflow, with $63.3 million captured during the trading day.
Sunny days ahead
Eric Balchunas, senior ETF analyst at Bloomberg highlighted that Grayscale’s Ethereum Trust (ETHE) has not seen any outflows in the last six days, which it sees as a sign that ETHE unlocks are complete.
He added:
“Sunny days ahead, although BTC ETFs are still several miles behind…”
Balchunas added that although Ethereum ETFs still lag behind Bitcoin ETFs (BTC), their individual performance is remarkable. ETHA, for example, ranks sixth among ETF launches in terms of inflows in 2024, out of more than 600 new ETFs.
Institutional support fuels growth
ETF Store CEO Nate Geraci highlighted a remarkable trend in Ethereum ETF results following the US election, with over $500 million in inflows in just four days. One of the main factors driving this increase is increasing adoption by institutions, such as the Michigan Retirement System’s recent allocation.
In its latest 13-F filing, the Michigan State Pension Fund revealed an $11 million investment in Grayscale Ethereum ETFs during the third quarter, making it the first public pension fund to add Ethereum to his wallet. Notably, the Michigan fund now holds more Ether than Bitcoin, with Bitcoin exposure of $7 million as of September 30.
Balchunas also suggested that the introduction of options trading for Ethereum ETFs could accelerate inflows, thereby attracting larger institutional investors. However, progress on this front may be slow.
The U.S. Securities and Exchange Commission (SEC) has recently delayed its decision on this issue, with some analysts including Bloomberg’s James Seyffartpredicting that a final decision could take until April 2025.
