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US spot ether products turned five months old yesterday.
But steady (and significant) net flows did not begin until after the election. First, a look at the flows by month:
| month | net flows |
| July 23-31 | – $484 million |
| August | +6 million dollars |
| September | - 46 million dollars |
| October | +$43 million |
| November | +$1.1 billion |
| December 1-20 | +$1.8 billion |
To recap: A torrent of net money came out of Grayscale's higher-priced Ethereum Trust (ETHE) in the first few days afterward. Convert it To the European Training Foundation. Inflows from other funds were unable to fully compensate for these flows.
Then there were three months of fairly stable flows. Industry observers attributed this in part to the need to... More education About ETH - a supportive value asset that is much more difficult to understand than BTC.
Motivated by Donald Trump's election victory Crypto market euphoria. While Bitcoin has reached several new all-time high price levels, ETH did not do that.
CoinShares Research Fellow Luke Nolan He told me before He's looking to February or March for ETH to reach a new high — as long as ETF flows remain strong.
BTC has gained more institutional attention than ETH due to its easier-to-understand digital gold narrative ($36 billion net inflows into Bitcoin ETFs versus $2.3 billion to ETH products).
Nolan added that there is the fact that ETH is also facing competition from other first layers such as Solana. Several fund groups have proposed ETFs SOL will be held.
“Ethereum developers have taken a long-term view on improving the protocol, while Solana has been very focused on generating interest and demand now,” Nolan said. “They are two valid approaches that each pay attention to their own use cases and niches.”
Monitoring cryptocurrency ETF flows will help us understand investor sentiment towards each asset – be it BTC, ETH, or other assets that could soon make their way into the ETF wrapper.
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