Ethereum (ETH) exchange traded funds (ETF) in the U.S. witnessed remarkable daily inflows on Friday. This serves as another indication that the second-largest cryptocurrency is gathering momentum as a catch-up trade following its underperformance compared to bitcoin (BTC) this year. Farside Investors' compiled data shows that the nine products combined recorded $332.9 million in net inflows during the shortened trading session on Friday. BlackRock's iShares Ethereum Trust (ETHA) and Fidelity Ethereum Fund (FETH) took the lead, attracting $250 million and $79 million of fresh funds respectively.
Friday's Inflows and Weekly Performance
Friday marked the fifth consecutive session with net inflows for the group. According to SoSoValue data, it concluded the second strongest week with $455 million in net inflows. It was a shorter week as U.S. traditional markets were closed on Thanksgiving Thursday. Additionally, ETH ETFs outpaced flows into their spot bitcoin counterparts, which gathered $320 million inflows on Friday but suffered net outflows during the week.Recent Resurgence
After losing favor among investors and lagging behind bitcoin in price action and ETF flows this year, ether has experienced a significant resurgence recently. Donald Trump's election victory rejuvenated interest in altcoins and decentralized finance (DeFi) applications. Along with strong ETF inflows, open interest for ETF futures on the institutional-focused Chicago Mercantile Exchange (CME) surged to all-time records of almost $3 billion, as per CoinGlass. This underscores the improving sentiment towards the asset.Price Performance and Ratio Analysis
While bitcoin spent the week consolidating below $100,000, ETH showed relative strength against the largest crypto. On Saturday, ETH's price hit a five-month high above $3,700 and outperformed BTC on both a weekly and monthly basis, although it still lags year-on-year, as indicated by CoinDesk Indices data. Joel Kruger, market strategist at LMAX Group, stated that the ETH-BTC ratio might be forming a major bottom after trending down for about three years. He said, "We believe the improved outlook for the DeFi space — a warmer regulatory climate with the incoming US administration — is a main driver behind the shift in sentiment, as market participants can now see a clearer path towards investing in Ethereum."READ MORE