The US market for spot Ethereum exchange-traded funds (ETFs) has experienced a shift in investor sentiment, with the largest weekly inflows recorded since early August. This surge comes after a six-week streak of consecutive outflows, indicating renewed enthusiasm among investors. Data from SoSoValue reveals that US-based spot Ethereum ETFs saw inflows totaling $58.7 million in a single day, leading to 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 with $11.5 million in inflows. BlackRock’s Ethereum ETF reached a milestone by surpassing $1 billion in total net asset value just two months after its launch, making it one of the top 20% of more than 3,700 ETFs available in the US market.
Other funds, such as Bitwise’s ETHW, Invesco’s QETH, Grayscale’s ETH, VanEck’s ETHV, and 21Shares’ CETH, also received significant inflows on Friday. However, Grayscale’s ETHE experienced outflows of $10.7 million, 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 the launch of these funds. The total net asset value of all Ethereum ETFs now stands at $7.4 billion, the highest since August 26. The recent rate cut by the Federal Reserve has fueled market confidence, leading to Ethereum outperforming Bitcoin in terms of price performance. Moreover, transaction fees have surged due to increased blockchain activity, reflecting growing interest in the world’s second-largest cryptocurrency by market capitalization.
In a separate development, the US 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). Originally expected by September 26, the SEC has extended the decision deadline to November 10. The delay allows the regulator to assess the potential implications of listing and trading options on BlackRock’s Ethereum Trust on market stability. This postponement is not unusual, as the SEC has the authority to extend its review period for up to 90 days under Section 19(b)(2) of the Securities Exchange Act to thoroughly evaluate the risks and benefits of the proposal. The SEC’s decision follows the approval of options trading for BlackRock’s iShares Bitcoin Trust (IBIT) after amendments were made to address concerns about market manipulation and excessive risk-taking.
The surge in inflows for US spot Ethereum ETFs indicates a resurgence of investor interest in Ethereum and the broader cryptocurrency market. Fidelity’s FETH fund and BlackRock’s ETHA fund are among the top performers in attracting significant inflows, with BlackRock’s fund achieving a notable milestone by surpassing $1 billion in total net asset value within just two months of launch. Other funds have also seen positive inflows, contributing to a total net asset value of $7.4 billion for all Ethereum ETFs combined. The recent rate cut by the Federal Reserve has boosted market confidence, leading to Ethereum outperforming Bitcoin in terms of price performance. Additionally, increased blockchain activity has resulted in higher transaction fees, reflecting a growing interest in Ethereum and its potential for growth.
The SEC’s decision to postpone the ruling on Nasdaq’s proposal to list and trade options on BlackRock’s iShares Ethereum Trust highlights the regulatory scrutiny facing cryptocurrency-related investment products. The SEC’s extension of the decision deadline to November 10 allows for a more thorough evaluation of the potential risks and benefits associated with introducing options trading for BlackRock’s Ethereum Trust. This delay follows the approval of options trading for BlackRock’s iShares Bitcoin Trust after addressing concerns about market manipulation and excessive risk-taking. The SEC’s cautious approach reflects the need to ensure market stability and investor protection in the rapidly evolving cryptocurrency market.
