Ethereum ETF Inflows Surge 4,363% in November, Reaching $1.42 Billion

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As a seasoned researcher with over two decades of experience in the financial industry, I must say that the recent surge in Ethereum exchange-traded funds (ETFs) and its price increase is nothing short of astonishing. Having witnessed numerous market cycles and trends, I can confidently assert that this growth spurt seems to be fueled by institutional investors’ increasing interest in Ethereum as a viable investment option.

Last November, I witnessed a staggering 4,363% surge in the addition of Ethereum tokens to spot ETFs, with approximately 362,474 ETH tokens, equating to about $1.42 billion, being added. Compare this to the previous month where only around 8,121 ETH worth roughly $31.8 million were incorporated.

According to information provided by on-chain analysis service Lookonchain on social media platform X, they pointed out that the value of ETH has increased by approximately 64% in the last month due to a surge in investments flowing into these financial products.

The price of Ethereum surged from around $2,442 to now stand at $3,925 over the past 30 days, and is up by more than 9% in the last week alone amid a wider cryptocurrency market rally that has helped the flagship cryptocurrency Bitcoin (BTC) top the $100,000 mark for the first time ever.

Over the past year, Ethereum has not kept pace with Bitcoin. Data from CryptoCompare reveals that Bitcoin increased by about 133.4%, while Ethereum saw a rise of approximately 71%. It’s important to mention that Exchange-Traded Funds (ETFs) based on Spot Bitcoin have witnessed larger inflows compared to their Ethereum counterparts.

Currently, Ethereum’s value is significantly increasing, coinciding with an unprecedented rise in its futures open interest. This term indicates the total number of active contracts, which has recently reached a record high above $23 billion, compared to approximately $7 billion at the beginning of 2021.

According to analyst Maartunn from CryptoQuant, an increase in incoming funds could result in heightened market turbulence in the coming days, as it has the ability to intensify price fluctuations, thus creating a scenario reminiscent of “intense fireworks.

According to CryptoGlobe’s report, a significant Ethereum investor who previously amassed approximately 400,000 ETH when Ethereum was valued at roughly $6 per token has resumed offloading their holdings.

As reported by on-chain analysis firm Lookonchain, a significant investor (referred to as a ‘whale’) amassed approximately 398,889 Ether (ETH) over a period of around three months from January to March 2016, spending roughly $2.4 million at the time. With Ethereum’s price skyrocketing in the following eight years, these tokens are now worth well over $1.34 billion.

As an analyst, I’m observing that the value of this cryptocurrency stands at approximately $3,600 per token, and its market capitalization is a substantial $433 billion. Interestingly, according to Lookonchain, a colossal Ethereum whale had been inactive for over eight years before it resumed selling on November 7.

Currently, Bitcoin is close to its record value, but Ethereum hasn’t yet approached its previous all-time high of approximately $4,600, which was reached in 2021. As CryptoGlobe stated recently, there has been a significant reduction of about $750 million in the amount of Ethereum being stored on cryptocurrency exchanges due to large-scale withdrawals from these platforms, indicating increased holder confidence or potential long-term investment strategies.

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2024-12-05 20:06