The tide is turning for Ethereum. After five consecutive days of inflows, ether (ETH) exchange-traded funds are displaying positive cumulative netflows for the first time since their launch in July.
Tuesday and Monday saw the two highest daily netflows for spot ETH ETFs at $135.9 million and $295.5 million, helping cumulative netflows stand at $94.6 million at presstime, data from SoSoValue shows.
The shifting tide of ETH inflows came ahead of ETF provider Bitwise announcing early Wednesday that it had acquired Ethereum staking firm Attestant, a step toward the crypto asset manager potentially debuting a new ETH ETF with staking rewards.
The nine spot ETH ETFs currently do not include rewards from staking, which refers to the act of securing the Ethereum blockchain in exchange for yield denominated in ETH.
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Unlike the spot bitcoin ETFs which saw continued substantial inflows since their inception in January, spot ether ETFs have been consistently seeing more outflows. At one point, cumulative netflows dropped as low as -$686.7 million on Sept. 23 as a result of U.S. dollars flowing out of Grayscale’s ETHE.
While Grayscale’s ETHE leads the other eight spot ETH ETFs by net assets with $5.1 billion, the digital asset management firm has had the highest amount of negative netflows at nearly -$3.2 billion.
BlackRock’s ETHA and Fidelity’s FETH have cumulative netflows of roughly $1.7 billion and $672.8 billion, respectively, making them the two ETFs with the biggest inflows.
The price of ETH has increased 2.4% in the last 24 hours and 25.2% in the past seven days to trade at $3,315, a more than three-month high for the second-largest cryptocurrency by market cap at nearly $400 billion.
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As to why the tide is shifting positively for Ethereum, COO of investment firm Firinne Capital Jim Hwang points to FOMO, a colloquialism for “fear of missing out,” stemming from the U.S. elections and U.S. citizens electing a crypto-friendly executive and legislative branch.
“Post-election, you see the broadening out of market gains beyond BTC into ETH, alt-L1s and DeFi,” Hwang messaged Unchained. “Expectations are running high that we will see a warmer environment in the form of broader adoption by institutions as part of their treasuries and pensions, a step up in integration of traditional financial rails with public blockchains, and far friendlier crypto-regulations with improved clarity.”
“These expectations on regulations are no longer a pipe dream.”