Ether (ETH) ETFs, Ethereum’s native cryptocurrency, have seen a sea change in their performance over the past week.
Eric Balchunas, investment fund specialist, described the rebound as a “rapid and sudden rise” which allowed them to emerge from what he called “the dark depths.”
This analysis is not a coincidence. Since their launch in July 2024, ETH ETFs had faced constant cumulative outflows. However, the panorama changed drastically after Donald Trump’s victory in the United States presidential elections.
The electoral impact It did not go unnoticed for these financial instruments. From November 5, Election Day, to November 12, Ethereum ETFs achieved a streak of six consecutive days of net inflows.
This performance was also reflected in the trading volume, which reached the figure of 3 billion dollarsindicating the intense activity in the purchase and sale of shares related to these funds.
The following chart presents the evolution of cumulative money flows into and out of Ethereum ETFs since their launch. In other words, it shows us how much money has entered or left these funds in a given period.
Among the funds that led these net inflows, the following stand out: iShares Ethereum Trust ETF (ETHA), managed by BlackRock, with $287 millionfollowed by Fidelity Ethereum Fund (FETH), managed by Fidelity, with $198 million.
To a lesser extent, Grayscale Ethereum Mini Trust (ETH) and Bitwise Ethereum ETF (ETHW) added $78 million and $45 million, respectively, according to Soso Value data.
On the other hand, not all funds enjoyed positive momentum. The Grayscale Ethereum Trust (ETHE) recorded net outflows of $101 million, being the only one to experience this decline.
Institutional investment boom
The 13F forms filed with the United States Securities and Exchange Commission (SEC) revealed a key fact: institutional investment in Ethereum ETFs skyrocketed during this period, as reported by CriptoNoticias.
Goldman Sachs, one of the largest investment banking firms in the world, reported having invested more than $25 million in these ETFs for the first time.
Citadel, a Chicago-based asset fund, also appeared there, reporting holdings valued at more than $3.5 million, distributed among several funds.
The influx of institutional capital not only contributed large sums to the market, but also sent a signal of confidence towards ether as a legitimate and valuable financial asset. This massive participation reinforces the perception that Ethereum and its derivatives are reaching a new level of acceptance in the financial world.
Impact on ETH price
The rise of ETFs had an immediate effect on the price of ether, which once again exceeded $3,000 after months of staying below this thresholdas seen in the following graph of TradingView.
This positive performance is partly explained by the performance of spot ETFs.
These funds, backed directly by the underlying asset, require management companies to acquire and hold ether in their treasuries.
The process creates direct demand in the marketreducing the available amount of ether and contributing to the increase in its price due to limited supply.
With the influx of institutional investments, increasing trading volume, and rising ETH price, the market appears to be recognizing the inherent value of ETH as a solid and promising asset.
