U.S. Spot Ether ETFs Hit Record Daily Inflow of $332M

Spot Ether exchange-traded funds (ETFs) in the U.S. experienced a historic surge on November 29, with $332.9 million in daily inflows. This marked a significant milestone for Ether-based investment products, breaking the previous record set earlier in November.

The surge in interest came as BlackRock, the world’s largest asset manager, contributed a substantial $250.4 million to the record inflow. This major contribution has helped position BlackRock’s iShares Ethereum Trust (ETHA) at the forefront of the Ether ETF market.

BlackRock’s Massive Contribution to Ether ETFs

BlackRock’s involvement in the surge is undeniable. Their ETH ETF, launched on July 23, has now attracted over $2 billion in inflows. The significant growth in inflows came on the heels of a 1.88% price increase for Ether on November 29, which saw the cryptocurrency climb to $3,662.

Nate Geraci, president of the ETF Store, pointed out the enormity of BlackRock’s efforts, noting that their Ethereum trust is drawing significant attention. With more than $2 billion already flowing into the ETF, it’s clear that institutional players are betting big on Ether’s future.

Ethereum ETFs Surpass Bitcoin in Inflows

For the first time ever, spot Ether ETFs surpassed Bitcoin ETFs in terms of daily inflows. While Bitcoin ETFs recorded $320 million in inflows on November 29, Ether’s inflows of $332.9 million beat them by a narrow margin. The shift in capital from Bitcoin to Ether ETFs signals a broader change in investor sentiment, as Ethereum continues to gain ground.

Felix Hartmann, founder of Hartmann Capital, noted that this could signal the start of what many are calling the “alt rotation,” where altcoins like Ether are gradually replacing Bitcoin as the dominant investment in the crypto space. This shift was confirmed by Ethereum Vibin, a prominent crypto commentator, who called it a “significant moment” for the cryptocurrency market.

The Bigger Picture: Altcoin Season on the Horizon?

The massive inflows into Ether ETFs come amid broader trends of increasing interest in altcoins. Between November 22 and 27, Ether ETFs saw net inflows of $224.9 million, while Bitcoin ETFs only saw $35.2 million, weighed down by outflows. This ongoing trend suggests that more institutional investors are looking to diversify their portfolios into altcoins like Ether, which may signal the beginning of a much-anticipated altcoin season.

Adding to this positive sentiment, Ethereum’s decentralized finance (DeFi) ecosystem scored a legal victory in a U.S. court, which could further boost investor confidence. Crypto trader Pentoshi summarized the mood on X, stating that “flows are finally picking up” as buyers absorb selling pressure, suggesting the market is set to continue its upward trajectory.

Ethereum Dominates Tether Supply, Surpassing Tron

In another important development, Ethereum has reclaimed its spot as the top blockchain for Tether (USDT), surpassing Tron. Ethereum now hosts $60.3 billion in USDT supply, following a 9.3% increase over the past week, while Tron’s supply fell to $58.1 billion. This marks Ethereum’s return to dominance in stablecoin supply, a position it last held in August 2022.

This shift is significant for the broader crypto ecosystem, as stablecoins like Tether play a critical role in providing liquidity and enabling efficient capital flow. Ethereum’s role as the primary blockchain for USDT is especially important as financial institutions increasingly turn to Ethereum for tokenizing dollar-backed assets.

While Ethereum’s USDT supply is growing, other blockchains are also gaining traction in the stablecoin space. BNB Chain, Arbitrum, and Avalanche are all contributing to the broader USDT supply, with $4.58 billion, $3.09 billion, and $1.31 billion, respectively.