The crypto market is experiencing a new historic turning point as Ether spot ETFs have just recorded their largest day of capital inflows. This exceptional performance, marked by an inflow of $332.9 million on November 29, even exceeds investments in Bitcoin ETFs over the same period.
Spot Ether ETFs break all daily inflow records
November 29, 2023 will go down in the history of crypto ETFs. The nine US spot Ether ETFs collectively attracted $332.9 million in investments in a single day, shattering the previous record of $295.5 million set on November 11.
BlackRock, the global asset management giant, particularly stood out by capturing $250.4 million alone via its iShares Ethereum Trust (ETHA). Since its launch on July 23, this fund has already exceeded the $2 billion mark in assets under management, demonstrating the growing appetite of institutional investors for Ether.
This remarkable performance is accompanied by an increase in the price of Ether, which is now trading around $3,662, showing an increase of 1.88% over 24 hours. Analysts see this as a strong signal of investor confidence in the second largest crypto by market capitalization.
A turning point in the dynamics of the crypto market
This all-time high marks a significant shift in the crypto sector's investment trends. For the first time, inflows into Ether ETFs surpassed those of Bitcoin ETFs, with the latter recording $320 million on the same day.
This development suggests a possible “altcoin rotation” as noted by Felix Hartmann, founder of Hartmann Capital, indicating that Wall Street is seriously starting to diversify its crypto investments beyond Bitcoin.
The trend was confirmed over several days, with Ether ETFs maintaining positive flows even during periods when Bitcoin ETFs were experiencing outflows.
Between November 22 and 27, Ether ETFs accumulated $224.9 million in net inflows, contrasting with $35.2 million for Bitcoin ETFs, affected in particular by a day of significant withdrawals on November 25.
This positive momentum comes against a broader backdrop of regulatory victories for the Ethereum ecosystem, including a favorable ruling from a US court regarding decentralized finance (DeFi).
In short, this historic performance of Ether ETFs could well mark the start of a new cycle in the crypto market, where institutional investors diversify their positions beyond Bitcoin. This development suggests a maturation of the market and growing confidence in the technological potential of Ethereum.
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