The U.S. spot Ether exchange-traded funds (ETFs) have witnessed massive inflows as the cryptocurrency industry experiences a rally. The ETFs' record-high net inflows were observed on November 11 at $294.9 million, while the previous record was $106.6 million since their launch in July. The increase emerges when other positive outcomes have been seen in the digital asset sector following Donald Trump's U.S. presidential election victory.
The Fidelity Ethereum Fund (FETH) secured the most investment, $115.5 million, a new achievement for its inflows since its inception. In second place was the iShares Ethereum Trust ETF, issued by BlackRock and attracted $100.5 million in the first week of its launch. Other ETFs included Grayscale Ethereum Mini Trust ETF (ETH) garnered $63.3 million, while Bitwise Ethereum ETF (ETHW) obtained $15.6 million in inflows. Despite these positive movements, other U.S. spot Ether ETFs did not report any inflows during the same period.
The increased ETF investments correspond to Ether, which rose 8.4% to $3,384 on November 11, the highest price in the last 14 weeks. This Ether price rise is not isolated; the overall market has seen a jump of almost 10%.
The increase in funds flowing into spot Ether ETFs indicates a growing investor interest in Ethereum, especially among traditional investors seeking exposure to the cryptocurrency. While Ethereum has lagged behind Bitcoin and Solana in this bull cycle, it has shown signs of recovery. Analysts like Rachael Lucas from BTC Markets have observed that Ethereum's recent performance, aided by spot Ether ETFs, signals a positive shift in momentum.
Although unavailable in U.S. spot ETFs, Ether's staking returns are also expected to drive further interest from traditional investors. However, the given factors are not a major concern as Ethereum continues to demonstrate better performance and has the potential to make further advancements in the evolving market environment.
Alongside Ether's surge, Bitcoin also experienced a breakout, surpassing the $88,000 mark. BlackRock's spot Bitcoin ETF achieved a new daily trading volume record of $4.5 billion, fueled by the broader optimism in the market. The positive sentiment surrounding Bitcoin was further reinforced by a $1.1 billion net inflow into the Bitcoin ETF shortly after Trump's election.
Overall, digital asset products attracted almost $2 billion in inflows, with Bitcoin leading the way, pulling in $1.8 billion. Ethereum also posted a solid recovery, securing $157 million in inflows. The combination of these factors has propelled global assets under management in digital assets to a new high of $116 billion.