Historically High Inflow of Capital into Ethereum ETFs

In a remarkable turn of events, the Ethereum sector has witnessed a record-breaking net daily capital inflow over nine consecutive trading days. This milestone was achieved by Ethereum-based products, particularly spot Ethereum ETFs from renowned firms like BlackRock, Fidelity, and Grayscale.

During these record-breaking days, daily inflows exceeded one billion USD on several occasions, with BlackRock’s Ethereum ETF notably capturing hundreds of millions of dollars in single-day inflows. This cumulative inflow contributed to several billion USD and increased institutional and retail investor demand.

On the other hand, the Bitcoin ETF sector has also shown a positive momentum. BlackRock's Bitcoin ETF led the way, with a capital inflow exceeding $770 million. Three other Bitcoin ETFs also reported positive capital inflows during this period. However, it's worth noting that two Bitcoin ETFs experienced outflows.

The nine consecutive trading days of record-breaking net daily capital inflow for Ethereum ETFs occurred prior to the past six days mentioned. During this recent six-day period, Ethereum ETFs showed no significant activity, and the remaining Bitcoin ETF products remained static. Interestingly, over the same six days, Hong Kong's spot Bitcoin ETFs registered an outflow of nearly 51 BTC.

On December 5, 2024, the net daily capital inflow for spot Ethereum ETFs was $428.44 million. Over $1.3 billion flowed into Ethereum-based products during the nine consecutive trading days. The capital inflows were distributed among four Ethereum funds: ETHA, ETH, FETH, and ETHW.

As of the recent report, BlackRock's spot Bitcoin ETF surpassed $50 billion in assets under management, making it the largest in the Bitcoin ETF sector. Conversely, no other Ethereum funds have surpassed this level in the Ethereum ETF sector, with the Ethereum ETF sector yet to reach the same asset under management level as BlackRock's Bitcoin ETF.

The Bitcoin ETF sector continues to demonstrate a trend in the market, with capital inflows and outflows indicating investor interest and confidence. The Ethereum sector's record-breaking net daily capital inflow marks a significant milestone, signalling increased institutional and retail investor demand for Ethereum-based products.