For 16 consecutive days, the spot Ethereum ETF from #BlackRock - iShares Ethereum Trust (ETHA) - has recorded a strong influx of capital, totaling $1.5 billion since November 20. This success marks a significant step in attracting investor interest in $ETH after a period of being overshadowed by $BTC .
Record inflows into Ethereum ETF
On December 14, the fund recorded an additional influx of $200 million, bringing the total fund value to $3.6 billion, according to data from CoinGlass. Previously, since its launch in July, the fund had attracted $1.7 billion in 84 trading days.
This increase in capital inflow coincides with Ethereum's price increase. On December 5, the price of Ethereum dropped to $3,800 but quickly rebounded above the psychological threshold of $4,000 the next day—the highest since March.
Reasons behind the growth momentum
In a recent statement, Jay Jacobs, head of #ETF at BlackRock in the US, said the company is only at the “tip of the iceberg” in developing products related to Bitcoin and Ethereum. At the same time, positive remarks from President-elect Donald Trump at the New York Stock Exchange, asserting “We will do something great with crypto,” have created strong momentum for capital inflows into the Ethereum market.
In addition to BlackRock, other funds like Fidelity Ethereum Fund (FETH) have also seen record capital inflows. On December 14, #FETH received an additional $200 million from investors.
Ethereum: The "underdog" is catching up
Although Bitcoin remains the focus of spot ETFs, Ethereum is beginning to record a strong recovery. However, the price of Ethereum has yet to reach the peak of $4,800 in 2021, while competitors like $SOL have set new price records.
James Butterfill, Head of Research at CoinShares, believes that Ethereum is “catching up” this year. The large influx of capital into the Ethereum spot fund is evidence of the positive shift in sentiment among investors. Meanwhile, the Solana fund has recorded three consecutive weeks of capital outflows, indicating a decrease in interest.
Future outlook
The success of spot Ethereum ETFs, particularly BlackRock's, not only promotes the development of Ethereum but also paves the way for other crypto assets. With companies like Bitwise and #21Shares applying to launch a Solana ETF in the US, the cryptocurrency investment market may become richer in the near future.
Conclusion: The growth momentum of Ethereum through spot ETFs is reinforcing its position as an important asset in institutional investors' portfolios. Is this the moment for Ethereum to break out and re-establish its position in the cryptocurrency market?