Improved prospects for decentralized finance (DeFi) and a more favorable regulatory environment under the incoming U.S. administration have fueled a shift in sentiment toward ether, according to LMAX strategist Joel Kruger.
On Friday, spot ethereum (ETH) exchange-traded funds (ETFs) in the U.S. experienced record daily inflows, signaling that ether is gaining momentum as a catch-up trade after significantly underperforming bitcoin (BTC) earlier this year.
The nine Ethereum ETFs collectively recorded $332.9 million in net inflows during the shortened trading session, according to data from Farside Investors. BlackRock’s iShares Ethereum Trust (ETHA) and Fidelity’s Ethereum Fund (FETH) led the charge, attracting $250 million and $79 million, respectively.
Friday marked the fifth consecutive session of net inflows for this group, concluding the second strongest week with a total of $455 million in inflows, as reported by SoSoValue data. The week was shortened due to U.S. markets being closed for Thanksgiving on Thursday.
Ethereum ETFs also outpaced bitcoin ETFs in terms of inflows, which saw $320 million in net inflows on Friday but experienced net outflows for the week.
After a period of underperformance relative to bitcoin, ether has experienced a resurgence in recent weeks, with renewed interest spurred by Donald Trump’s election victory and a revival of interest in altcoins and DeFi projects.
In addition to strong ETF inflows, open interest in CME ether ETF futures surged to all-time highs, approaching $3 billion, according to CoinGlass data. This underscores growing institutional interest and positive sentiment surrounding the asset.
