Ethereum ETFs are riding the post-election wave that has enveloped the wider crypto market. During its surge, Ethereum ETFs have created an optimistic atmosphere while reversing the billions of outflows that have caused worries for investors since its debut
According to data from Soso Value, Ethereum ETFs’ value peaked on Tuesday, with its cumulative net inflows showing positive signs. The data showed an increase that has hit around $98 million. Accounting for the inflows of nine other ETFs, the entire inflows moved towards $238 million on Thursday.
Ethereum ETFs register overdue positive net inflows
After the green light from the Securities and Exchange Commission (SEC) in July, Ethereum ETFs got off to a bad start. The first five trading days were nothing to write about, with the Grayscale Ethereum Trust (ETHE) witnessing outflows worth around $1.7 billion. At the time, Ethereum’s value dropped to $3,400, according to data from Soso Value.
Analysts attributed the continued outflows from ETHE to its high expense ratio. They noted that it was costly to hold the investment instrument compared to its alternative. A while later, it was the wider crypto market that experienced a decline, with micro jitters and the yen ‘carry-trade’ catching users off guard.
21Shares research analyst Matt Mena noted that the approval and subsequent launch of Ethereum ETFs came at a bad time for the market. However, he feels the optimism is now in full force in the market.
While investors triggered outflows worth $3.2 million from Ethereum ETFs, the previous six days set a new record. With investors involved in more actions on election day, $796 million was allocated to the products. Notably, it was the longest and largest streak of inflows since the approval.
Donald Trump’s victory boosts investors optimism
According to Mena, investors are taking Trump’s victory well. He notes that it may be due to the pro-crypto promises the Republican candidate made during his campaign. Mena also points out that the wider pro-crypto atmosphere in Congress will encourage developers to create applications on Ethereum.
Plume CEO Chris Yin also noticed the overdue excitement in the crypto market. “As the U.S. ushers in a more favorable regulatory administration, TradFi institutions and retail crypto traders feel more secure about the promise and resilience of digital assets,” Yin said.
FalconX Head of Research David Lawant also shared the same sentiments, noting that investors expect favorable policies, which is driving sentiment through the roof. He clarified that a regulatory framework could validate one of Ethereum’s use cases.
He explained that the present Ethereum ETF inflows may be a spillover effect among institutional investors, noting the billions of dollars in inflows that Bitcoin ETFs have seen since Trump’s re-election. Lawant also mentioned that traders will start looking at the market and see other investment opportunities that are not tied to Bitcoin.
The CEO explained that since Ethereum is the only other investment opportunity with an approved ETF instrument, it will be the first thing traders bump into if they want to move away from Bitcoin. He also noted that since Ethereum’s price is also on the rise, it could be one of the factors that will influence new investors.
Weekly inflows of Ethereum ETFs in the past week. Source: Soso Value
According to data from Soso Value, the total cumulative net inflows of Ethereum ETFs stands at $178 million. Over the last week, the cumulative net inflow figure is at $575 million, with its total net assets at $9.2 billion. Ethereum is trading at $3,130, up by 1.75% in the last 24 hours and up by 5.35% in the past seven days, according to CoinMarketCap data.
