Ethereum ETFs surge after US election, approaching positive net flows

Spot Ethereum (ETH) exchange-traded funds (ETF) amassed $295.5 million in inflows on Nov. 11, their highest daily positive net flow since launch — bringing them $29 million away from positive net flows.

According to Farside Investors data, Fidelity’s FETH led the inflows, registering $115.5 million, while BlackRock’s ETHA recorded the second highest inflows at $101.1 million.

Grayscale’s Ethereum Mini Trust saw the third highest inflows, with $63.3 million captured over the trading day.

Sunny days ahead

Bloomberg senior ETF analyst Eric Balchunas highlighted that Grayscale’s Ethereum Trust (ETHE) did not register any outflows for the past six days, which he considered a sign that ETHE’s unlocks are over.

He added:

“Sunny days ahead, altho still several country miles behind BTC ETFs..”

Balchunas added that while Ethereum ETFs still lag behind Bitcoin (BTC) ETFs, their individual performance is noteworthy. ETHA, for instance, ranks as the sixth-largest ETF launch by inflows in 2024 out of more than 600 new ETFs.

Institutional support fuels growth

The ETF Store CEO Nate Geraci pointed to a remarkable trend in Ethereum ETFs post-US election results, with over $500 million in inflows over just four days. One key factor behind this surge is increasing institutional adoption, such as the Michigan Retirement System’s recent allocation.

In its latest 13-F filing, the Michigan State pension fund revealed an $11 million investment in Grayscale Ethereum ETFs during the third quarter, making it the first public pension fund to add Ethereum to its portfolio. Notably, the Michigan fund now holds more Ether than Bitcoin, with $7 million in Bitcoin exposure as of September 30.

Balchunas also suggested that introducing options trading for Ethereum ETFs could accelerate inflows, attracting larger institutional investors. However, progress on this front may be slow.

The US Securities and Exchange Commission (SEC) recently delayed its decision on this matter, with some analysts, including Bloomberg’s James Seyffart, predicting a final decision could take until April 2025.

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