The US Ethereum ETF recently reported inflows of over USD 700 million, indicating a major shift in the market. These inflows have coincided with a notable rise in ETH prices, adding momentum to the ETF's growth. BlackRock's iShares Ethereum Trust leads the pack with the largest accumulation of assets and underpins the ETF's success. Pending changes at the SEC could further improve prospects for altcoin ETFs under a new crypto-friendly chair candidate.
Spot Ethereum exchange-traded funds have lagged behind Bitcoin funds, which have been breaking records with rapid asset accumulation. However, recent trading data for the US Ether ETF has been encouraging, with the last eight trading days showing positive net inflows.
Related: Breaking news: Bitcoin exceeds USD 100,000 for the first time in history
Despite no trading on November 28, the U.S. Thanksgiving holiday, nine funds collectively sold more than US$700 million (A$1.08 billion) during the period, according to Pharside Investors data. of funds were inflowed.
US Ethereum ETF inflows $1 million, Source: Farside.co.uk
Increased capital inflows are a sign of impending alt season: Analyst
The recent inflows mark a significant turnaround from several months of mediocre performance. These funds, which began trading in July 2024, have experienced significant inflows for the second time in just a few weeks, showing that the ETFs are gaining momentum.
According to data from Coinglass, the increase in inflows has coincided with an increase in ETH price. At the time of writing, ETH was trading at US$3,829 (AU$5,958), up 5% in the past 24 hours and 59% in the last month.
Ethereum Spot ETF Total Net Inflows, Source: Coinglass
Pav Hundal, chief market analyst at Swyftx, told CNA he believes the influx is a good sign for the impending alternative season.
I believe that the material for the alternative season is Ethereum, which is at an all-time high. And I think seeing Ethereum ETF flows pick up is a big part of that outcome materializing.
Swyftx Lead Market Analyst Pav Hundal
BlackRock's iShares Ethereum Trust ETF (ETHA) has seen by far the most inflows compared to other ETFs, currently holding 728,870 ETH, with a current value of 2.6 The equivalent of US$4 billion (A$4 billion).
Multiple filings and conversions awaiting SEC approval
The success of the BTC and ETH funds has led to a flurry of applications for additional altcoin ETFs.
According to Bloomberg, there are currently 16 applications awaiting decisions on conversion or new applications, including 3 BTC and ETH ETF applications, 2 basket ETFs (holding multiple different assets), and 5 1 Solana ETF, 4 XRP ETF, and 1 Litecoin and Hedera (HBAR) ETF each.
Asked if the SOL ETF could be approved by June 2025, Bloomberg ETF analyst James Seifert was less optimistic, calling it “very unlikely.” Ta.
However, a change in leadership at the U.S. Securities and Exchange Commission (SEC) could tip the scales in favor of altcoin ETFs.
Related: Opportunity for Australian crypto assets companies to shape ASIC guidance on digital asset compliance
President-elect Donald Trump just approved the nomination of crypto-friendly Paul Atkins, citing Atkins' common sense approach.
Paul has proven to be a leader in common sense regulation. He believes in the promise of robust, innovative capital markets that meet investors' needs and provide the capital to make our economy the best in the world.
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Ripple's Chief Legal Officer Stuart Alderotti, who has first-hand experience with the SEC's enforcement approach through long and bitter legal battles with the agency, could not agree more.
The Atkins-Peirce-Ueda trio at the SEC will not only restore common sense to the SEC, but will also bring real investor protection. https://t.co/dV0f5qDAOy
— Stuart Alderoty (@s_alderoty) December 4, 2024
