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Ethereum ETFs Surge with Robust Inflows, Signalling Market Turnaround
- US Ethereum ETFs recently reported over US$700 million in inflows, signalling a significant market shift.
- These inflows correspond with a notable rise in ETH prices, adding momentum to the ETFs’ growth.
- BlackRock’s iShares Ethereum Trust leads with the largest asset accumulation, underpinning the ETFs’ success.
- A pending change at the SEC could further boost the prospects of altcoin ETFs under the new crypto-friendly chair nominee.
Spot Ethereum exchange-traded funds have been lagging behind their Bitcoin counterparts, which have been breaking records for their fast asset accumulation. However, recent trading data for the US Ether ETFs is promising, with the eight most recent trading days showing net positive inflows.
Related: Breaking: Bitcoin Surges Through US$100k Mark for First Time Ever
Data from Farside Investors shows the nine funds combined had over US$700 million (AU$1.08 billion) in inflows over that period, although there was no trading on 28 November, the US Thanksgiving holiday.
Increase in Fund Inflows Indication of Imminent Altseason: Analyst
The recent inflows represent a significant turnaround after several months of mediocre performance. These funds, which began trading in July 2024, have now experienced substantial inflows for the second time in just a few weeks, indicating increasing momentum for the ETFs.
Data from Coinglass shows the increase in inflows coincides with the price of ETH rising. At the time of writing ETH trades for US$3,829 (AU$5,958), an increase of 5% in the past 24 hours and 59% over the past month.
Swyftx Lead Market Analyst Pav Hundal told CNA that he believes the inflows are a good indication of an impending altseason.
An ingredient, I believe, of an alt season is Ethereum at all-time highs. And I think seeing Ethereum ETF flows pick up is a big part of that outcome materialising.
Swyftx Lead Market Analyst Pav Hundal BlackRock’s iShares Ethereum Trust ETF (ETHA) has, by far, received the most inflows compared to the other ETFs, now holding 728,870 ETH, currently valued at US$2.6 billion (AU$4 billion).
Multiple Filings and Conversions Awaiting SEC Approval
The success of the BTC and ETH funds has caused a flood of filings for more altcoin ETFs.
According to Bloomberg there are currently 16 filings awaiting a decision on a conversion or new application, including three BTC and ETH ETF filings, two basket ETFs (holding several different assets), five Solana ETFs, four XRP ETFs, as well as one Litecoin and Hedera (HBAR) ETF each.
Bloomberg ETF analyst James Seyffart wasn’t too optimistic when asked if the SOL ETFs could see approval before June 2025, putting the odds at “extremely low”.
However, a change in leadership at the US Securities and Exchange Commission (SEC) could tip the scales in favour of altcoin ETFs.
Related: Chance for Australian Crypto Businesses to Shape ASIC Guidance on Digital Asset Compliance
President-elect Donald Trump has just confirmed the nomination of crypto-friendly Paul Atkins for the job, citing Atkins’ common-sense approach.
Paul is a proven leader for common sense regulations. He believes in the promise of robust, innovative capital markets that are responsive to the needs of Investors and that provide capital to make our Economy the best in the World.
Donald Trump Ripple’s Chief Legal Officer, Stuart Alderoty, who has first-hand experience with the SEC’s enforcement approach through a long and arduous legal battle with the agency, couldn’t agree more:
Author
Aaron Feuerstein
Aaron Feuerstein is a freelance writer based in Melbourne. His focus is on decentralised finance and the regulatory space surrounding blockchain. He holds a Master's in Accounting. When he is not studying the latest legal case, he enjoys his time as a modest but eager hobby cook.
