Ethereum (ETH) has seen a dramatic shift in market sentiment, driven by renewed interest in decentralized finance (DeFi) and a more favorable regulatory environment with the incoming U.S. administration, as noted by LMAX strategist Joel Kruger.
On Friday, Ethereum exchange-traded funds (ETFs) listed in the U.S. experienced record-breaking daily inflows, signaling a strong rebound for the second-largest cryptocurrency. The ETFs saw $332.9 million in net inflows during the shortened trading session, according to Farside Investors data. BlackRock’s iShares Ethereum Trust (ETHA) and Fidelity’s Ethereum Fund (FETH) were the leaders, attracting $250 million and $79 million, respectively.
This marked the fifth consecutive day of positive inflows, closing out a strong week with $455 million in total inflows, per data from SoSoValue. The week was cut short due to the Thanksgiving holiday and the closure of U.S. markets.
Ethereum ETFs outperformed Bitcoin’s (BTC) spot ETFs, which garnered $320 million in inflows on Friday but experienced outflows during the week.
After a period of underperformance compared to Bitcoin, Ethereum has been experiencing a resurgence in both price and investment flows, partly driven by a surge of optimism following Donald Trump’s election victory, which boosted interest in altcoins and DeFi projects.
In addition to robust ETF inflows, Ethereum’s futures market on the CME has also seen a surge, with open interest reaching nearly $3 billion, reflecting strong institutional demand for ETH, according to CoinGlass data.
