Ethereum-based spot Ether ETFs have significantly outpaced Bitcoin ETFs, with net inflows of $224.9 million over the last four trading days. Spot Bitcoin ETFs saw net inflows of just $35.2 million during the same period. This once again highlights Ethereum’s growing popularity and investor confidence in the market.
The Ethereum price has surged 7.7% over the past week to $3,590, showing a strong uptrend. This rally was supported by the victory of Tornado Cash in the US courts and the news that SEC Chairman Gary Gensler could be replaced by crypto-friendly Paul Atkins. ETH’s value against Bitcoin has also increased, with the ETH/BTC ratio reaching 0.037 BTC. However, Bitcoin ETFs still lead the market with a total inflow of $6.2 billion in November.
Is a DeFi Renaissance Coming?
President-elect Donald Trump and his family’s connections to a DeFi protocol called World Liberty Financial are raising expectations that crypto regulations will become more investment-friendly. Experts suggest that under Trump’s leadership, Ethereum and the DeFi ecosystem in general could witness a new era of growth, a “DeFi renaissance.”
Markus Thielen, Founder of 10x Research, attributed the Ethereum price rally to the legal victory of crypto privacy protocol Tornado Cash and the possibility of the SEC adopting a more lenient regulatory approach. Thielen said that these developments would create a supportive environment by reversing the regulatory pressures that Ethereum has been facing.
Experts say Ethereum’s current bull cycle lagging behind other assets like Bitcoin and Solana presents an opportunity. This view is further strengthened when considering that demand for Ether ETFs has increased by 160% since Trump was elected president. Ethereum’s robust DeFi infrastructure is driving interest by offering investors “early opportunities” and higher returns.