Ethereum Cryptocurrency ether (ETH) exchange-traded funds (ETFs) have raised $1.66 billion in new investments so far in December, marking 74% of total inflows since their launch in July 2024. The investment firm Hashdex points out in a report.
According to the company indicated, This behavior suggests growing institutional interest in Ethereumbeyond Bitcoin (BTC), the main digital currency on the market.
After months of constant outputs Since its debut last July, ETH ETFs experienced a turnaround in December.
This change coincided with the Donald Trump’s victory in the United States presidential elections.
The most notable funds in this positive flow have been BlackRock’s iShares Ethereum Trust ETF (ETHA), with $3.4 billion, and the Fidelity Ethereum Fund (FETH), with $1.454 billion accumulated, according to Soso Value data.
Inflows and outflows of Ethereum ETFs. Source: SosoValue.
“The high ratio of net inflows to market capitalization reflects growing confidence in Ethereum,” Hashdex stated. This dynamism could facilitate the arrival of more regulated cryptocurrency-based products to the market.
New opportunities in combined products
Precisely, the United States Securities and Exchange Commission (SEC) approved last week the first ETFs that combine bitcoin (BTC) and ether (ETH), as reported by CriptoNoticias.
These products, developed by Hashdex and Franklin Templeton, will allow investors to access both cryptoassets through a single financial instrument, opening new possibilities in the market.
Impact on ETH price
The positive performance of ETFs has directly influenced the price of ether, which reached a maximum of $4,100 on December 16a level not seen in six months.
However, ETH remains below its all-time high of $4,800. Currently, its value is around $3,400, as seen in the following chart. TradingView.
ETH price. Source: TradingView.
Such behavior is related to the operation of the funds. The companies that manage them must hold ETH in their treasuries to back the shares issued, thus reducing the amount available on the market.
This decrease in supply tends to raise its price, according to the laws of supply and demand.
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