Ethereum ETFs have seen a positive turnaround in inflows, overcoming a rocky start and hitting new records following Donald Trump's victory in the US presidential election. Investors are starting to return to Ethereum-related products amid expectations of a more favorable regulatory environment, bringing the total net inflows from Ethereum ETFs to $238 million on Thursday.

Difficult Beginnings and Breakthroughs

  • Ethereum ETFs, especially the Grayscale Ethereum Trust (#ETHE ), struggled when they launched in July. ETHE saw $1.7 billion in outflows in its first five days due to high maintenance costs and Ethereum's price falling to a low of $3,400.

  • Macro factors such as global economic uncertainty and market volatility also negatively affect capital flows.

However, the optimism returned after Election Day. For six consecutive days, Ethereum ETFs saw record inflows, with $796 million pouring in on Election Day itself.

Positive Psychology From Donald Trump's Victory

  • Trump's victory has raised hopes of a pro-crypto administration that will spur the development of applications on the network. Investors expect policies friendly to stablecoins and digital assets to drive long-term growth for the industry.

  • Ethereum prices surged, rising from $2,400 on election day to $3,400 before falling slightly to $3,100. The price increase further encouraged investor interest in Ethereum ETFs.

Short Term Success and Long Term Potential

  • While ETHE initially came under heavy pressure, other Ethereum ETFs have performed impressively. In total, Ethereum ETFs have attracted $3.5 billion in inflows in less than four months.

  • Ethereum continues to be seen as a top pick alongside $BTC , with interest from both institutional and individual investors.

Cryptocurrency Market Still Has Much Potential for Development

The success of Ethereum and Bitcoin ETFs not only shows the growing confidence of investors but also opens up opportunities for other financial products in the cryptocurrency industry. With the expectation of a clearer legal framework and a more favorable environment, cryptocurrencies continue to be a potential field to exploit in the future.