The US market for spot Ethereum exchange-traded funds (ETFs) has recently experienced a shift in investor sentiment, with the largest weekly inflows recorded since early August. According to data from SoSoValue, US-based spot Ethereum ETFs saw inflows totaling $58.7 million on Friday alone, helping the funds achieve a net positive inflow of $84.5 million for the week. Fidelity’s FETH fund led the charge with a one-day inflow of $42.5 million, followed by BlackRock’s ETHA fund, which attracted $11.5 million. BlackRock’s Ethereum ETF has quickly surpassed $1 billion in total net asset value, making it only the second Ethereum ETF to achieve this milestone, following Grayscale’s Ethereum Mini Trust.
Other funds that saw gains on Friday included Bitwise’s ETHW, Invesco’s QETH, Grayscale’s ETH, VanEck’s ETHV, and 21Shares’ CETH. However, Grayscale’s ETHE experienced $10.7 million in outflows, while Franklin’s EZET saw no change in inflows or outflows. The renewed inflows were recorded on three out of five trading days last week, marking only the second week of positive inflows since these funds were launched in late July. The total net asset value of all Ethereum ETFs now stands at $7.4 billion, the highest since August 26.
The recent surge in inflows comes amidst a favorable market environment as Ethereum’s price has outperformed Bitcoin, and transaction fees have surged due to increased blockchain activity. The recent rate cut by the Federal Reserve has bolstered market confidence, reflecting the growing interest in the world’s second-largest cryptocurrency by market capitalization. Despite the positive sentiment, the U.S. Securities and Exchange Commission (SEC) has postponed its decision on Nasdaq’s proposed rule change to list and trade options on BlackRock’s iShares Ethereum Trust (ETHA) until November 10. This delay allows the SEC to thoroughly assess the potential implications of such a move on market stability.
The SEC’s decision to delay the ruling on Ethereum options is not unusual, as the regulator has the authority to extend its review period for up to 90 days to evaluate the potential risks and benefits of the proposal. This postponement follows the SEC’s approval of options trading for BlackRock’s iShares Bitcoin Trust (IBIT) after addressing concerns about market manipulation and excessive risk-taking. In addition to the delay in ruling on BlackRock’s Ethereum options, the SEC has also postponed its decision on a separate proposal by NYSE American LLC. Despite the regulatory hurdles, the growing interest in Ethereum ETFs signals a positive outlook for the cryptocurrency and the broader market as a whole.
