- Bitcoin and Ethereum ETFs saw $7.6B in November 2024 net inflows, marking a historic surge.
- Institutional interest in crypto grows, as Ethereum’s appeal outpaces Bitcoin’s in recent months.
As a seasoned researcher with over two decades of experience in the financial markets, I have witnessed countless trends come and go, but the surge in institutional interest in Bitcoin [BTC] and Ethereum [ETH] ETFs is one that truly stands out.
In November 2024, U.S.-listed Bitcoin [BTC] and Ethereum [ETH] Exchange Traded Funds (ETFs) saw an unprecedented spike, attracting a staggering $7.6 billion in investments. This surge can be attributed to the thriving market conditions and optimistic regulatory environment under President-elect Donald Trump, which seems to favor both Bitcoin and Ethereum’s growth.
Significantly, Ethereum has surpassed Bitcoin in its recent performance, demonstrating increased investor trust and the expanding influence of the cryptocurrency sector.
Record inflows for BTC and ETH ETFs
In November 2024, U.S.-based Bitcoin and Ethereum ETFs experienced unprecedented net investments totaling more than $7.6 billion, signifying a major advancement in the growing maturity of the digital currency marketplace.
Approximately $652 million was invested in Bitcoin and Ethereum ETFs combined, with Bitcoin ETFs accounting for $320 million and Ethereum ETFs attracting an additional $332 million, indicating a rising level of investor attention towards these digital assets.
Since its launch of a spot ETF in July, Ethereum has seen significant growth. Notably, BlackRock’s ETHA added approximately $300 million to the total inflow of $467 million between November 25th and 29th.
Even though Bitcoin leads in overall wealth, Ethereum’s notable surge by 15% against Bitcoin’s 1.7% drop in late November indicates a growing interest from institutional investors towards Ethereum.
Institutional interest and its impact on the market
The substantial investments pouring into U.S. Bitcoin and Ethereum Exchange-Traded Funds (ETFs) highlight the growing involvement of institutional investors within the crypto market. These ETFs provide a secure and convenient avenue for conventional finance to interact with these digital currencies.
The significant increase in funds moving into Ethereum, largely due to BlackRock’s ETHA, indicates a change in the institutional perspective towards it. Although Bitcoin ETFs still hold the majority with more than $105 billion in assets, Ethereum’s swift rise suggests its increasing attractiveness as a multi-purpose asset for both speculative and practical investment opportunities.
Investments from institutions can boost market liquidity, lower price fluctuations, and add credibility. Yet, there’s a drawback: it might lead to a concentration of market control among a smaller number of players, which could amplify potential system risks.
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2024-12-03 16:07