ETH appears to be stirring, climbing nearly 37% this past week following Bitcoin’s (BTC) all-time high. This recent momentum is drawing significant interest, including a record-setting daily inflow of $295 million into Spot Ethereum ETFs on November 11, an increase driven by rising institutional and retail interest.
Ethereum ETFs Surge Amid Market Boom
Ethereum, the second-largest crypto by market cap at $404 billion, is catching up to Bitcoin. Last week, the token surged over 35% in value, spurred not just by the broader crypto rally but also by a landmark event: Spot ETH ETFs in the US saw a record $295 million in daily inflows. The previous high was $106 million during their July 2024 launch.
Leading this ETF influx was Fidelity’s FETH with $115.48 million, followed by BlackRock’s ETHA with $101.11 million, Grayscale’s ETH with $63.32 million, and Bitwise’s ETHW at $15.57 million. Altogether, spot ETH ETFs hold $9.72 billion in net assets, about 2.41% of Ethereum’s total market cap. Net outflows remain modest at $41.30 million.
ETH Price Action Gains Traction in DeFi Sector
The record-breaking inflows hint at growing interest from institutional investors, which is positively influencing ETH’s price. In 2024, ETH has trailed behind other cryptocurrencies, but Q4 2024 could bring a pivotal shift. According to Onchain Foundation’s Leon Waidmann, ETH staking levels have reached an all-time high, with exchange reserves at record lows, hinting at a potential supply squeeze that could boost ETH’s price significantly.
The ETH/BTC ratio has rebounded from a low of 0.034 to 0.037, with resistance around 0.040—a level that could propel ETH higher against BTC if breached. ETH still trades 32% below its all-time high of $4,878, recorded in November 2021.
DeFi Sector Sees New Growth
Ethereum’s DeFi sector is also experiencing renewed activity. According to DefiLlama, the total value locked (TVL) across Ethereum-based DeFi protocols is now $62.36 billion, up from $24 billion last November. Of this, $33 billion is staked in Lido, followed by Aave with $15.21 billion and EigenLayer at $14.57 billion.
However, some investors remain cautious due to Ethereum’s high issuance rate, raising concerns about the “ultrasound money” narrative. As of today, ETH trades at $3,291, up 3.1% in the past 24 hours.
