Ethereum ETFs Inflows Reached $428 Million, As it Leapfrog Mastercard Market Cap
Ethereum inflows pushed the cumulative net inflows for Ether ETFs past the $1 billion mark since their July launch, a testament to growing investor confidence in the asset class.
On December 5th, 2024, the price of Ethereum (ETH) breached the $4,000 mark for the first time since March of this year. The surge coincided with a record-breaking influx of capital into these ETFs, totaling $428 million in net inflows – the highest single-day total recorded to date.
Notably, the remarkable inflow pushed the cumulative net inflows for Ether ETFs past the $1 billion mark since their July launch, a testament to growing investor confidence in the asset class.
The unprecedented capital inflow into Ether ETFs is particularly noteworthy in light of recent market trends. While Bitcoin (BTC) experienced significant price volatility on December 5th, fluctuating between $101,000 and $92,000, Ethereum’s steady climb highlights a distinct divergence in market sentiment.
Ether Inflows Surge with US Election Nitro
The divergence is likely attributable to the increased regulatory certainty and investor confidence surrounding ETH ETFs, particularly in the wake of the 2024 US presidential election.
The election of Donald Trump, widely anticipated to adopt a more crypto-friendly regulatory environment, appears to have been a pivotal factor in stimulating investor interest.
Before the election, Ether ETFs experienced net outflows exceeding half a billion dollars, with a significant portion exiting the Grayscale Ethereum Trust (ETHE). However, since November 6th, the landscape shifted dramatically.
Investor sentiment turned decidedly bullish, resulting in net inflows exceeding $1.88 billion. BlackRock’s iShares Ethereum Trust (ETHA) emerged as the primary beneficiary, attracting over $1.2 billion of this investment.
However, while these figures are impressive, industry experts such as Nate Geraci, President of The ETF Store, offer a tempered perspective, citing factors such as the substantial outflows from ETHE and the limitations on staking for ETF holders as moderating influences.
Ethereum Overtake Mastercard in Market Cap
The market capitalization of Ethereum has now surpassed that of Mastercard, reaching $485 billion compared to Mastercard’s $484 billion. This landmark achievement underscores Ethereum’s growing prominence as a significant player in the global financial landscape.
Moreover, the combined holdings of Bitcoin spot ETFs have recently surpassed the estimated holdings of Satoshi Nakamoto, the pseudonymous creator of Bitcoin, although the actual control and accessibility of these holdings remain uncertain.
