Yesterday, US Spot ether Products celebrated their five-month anniversary.
However, net inflows that were consistent and substantial only came after the presidential election. The first thing to do is look at monthly flows:
Monthly | Net Flows |
August 23-31 | 484,4 Million Dollars |
August | 6 Million Dollars |
The September issue of the newspaper is a good time to start planning. | 46 Million Dollars |
September | Plus $43 Million |
October | More than $1 Billion |
The dates of December 1-20 are: | Plus $1.8 billion |
Grayscale’s Ethereum Trust, which is more expensive than other ETFs, experienced a massive outflow of funds in the days immediately following its conversion. Inflows from other funds could not offset these.
Three months later, the flow was essentially flat. Industry watchers attributed this in part to the need for more education about ETH — an asset with a value prop more difficult to grasp than BTC.
Donald Trump’s win in the presidential election has fueled a crypto-market frenzy. ETH’s price has not reached the new record high levels that bitcoin has.
CoinShares research associate Luke Nolan previously told me he’s eyeing February or March for ETH to hit a new high — as long as ether ETF flows remain strong.
BTC attracted more attention among institutions due to the easier narrative of digital gold ($36 billion in net flows for Bitcoin ETFs vs. $2 billion for ETH).
Nolan also added that ETH is facing competition from layer-1s such as solana. A number of fund groups proposed ETFs to hold SOL.
“Ethereum developers have taken a long-term view as to improving the protocol whilst Solana has very much focused on capturing attention and demand now,” Nolan added. “They are both valid approaches that each attend to their own use cases and niches.”
Keeping an eye on crypto ETF flows will help us understand investor sentiment toward each asset — whether it be BTC, ETH or others that could soon make their way into an ETF wrapper.
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