Investor interest in spot Ethereum ETFs (exchange-traded funds) appears to have waned after failing to record net inflows for six consecutive days. However, the cryptocurrency product closed high on Friday, November 22, with significant capital inflows.
This capital inflow represents a shift in investor sentiment, which has not been particularly positive over the past few days. Nonetheless, the market is hoping that this newfound momentum can continue and perhaps spark some bullish action in ETH prices.
Can an Ethereum ETF Ensure ETH Price Recovery?
The U.S.-based spot Ethereum ETF saw net inflows of $91.21 million on Friday, according to the latest data from SoSoValue. The positive one-day performance was the first net inflow for the exchange-traded fund since November 13.
Market data shows that a large portion of the inflows came from BlackRock's iShares Ethereum Trust (ticker: ETHA). As of the close of the previous week, the crypto product had total daily inflows of about $99.7 million.
Fidelity’s Ethereum Fund (ticker: FETH) and Bitwise’s Ether ETF (ETHW) were the only other products to see inflows on Friday, recording $5.76 million and $4.96 million, respectively. Grayscale’s ETHE and ETH saw outflows of more than $18.5 million and $621,000, respectively.
As mentioned earlier, Friday’s performance represents a return to positive inflows for Ethereum ETFs. Prior to this, crypto products saw six consecutive days of outflows, with a cumulative loss of $225.6 million during that period.
The price of ETH initially appeared to have found its footing, but outflows from the Ethereum ETF also slowed during this period. The trend highlights the significant influence that exchange-traded funds have on price movements — both for Bitcoin and Ethereum, the world’s largest cryptocurrency.
The price of ETH has also seen an uptick over the past few days as the fortunes of the Ethereum ETF in the U.S. appear to have turned around. Investors will be hoping that the positive momentum from the Ethereum ETF continues and translates into the price of altcoins.
Ethereum price at a glance
At the time of writing, ETH is trading at around $3,423, having gained 2.1% over the past day. According to data from CoinGecko, the altcoin is up more than 9% on the weekly timeframe.
