As the market buzzes with the launch of new altcoin ETFs, Ethereum’s subtle yet significant momentum is quietly gaining traction. The Ethereum Spot ETF, acknowledged as the largest altcoin ETF globally, has been steadily gaining traction since its introduction with the innovative Bitcoin ETF launch. The latest figures indicate that investor confidence in Ethereum remains robust. On November 24th, Ethereum Spot ETFs saw notable net inflows of $96.6 million, with BlackRock making a substantial contribution of $92.6 million, marking its first inflow in two weeks. The momentum kept growing from that moment forward. Just one day later, ETH funds experienced an influx of $78.6 million, led by Fidelity’s offering, which attracted $47.5 million. BlackRock’s fund followed closely with $46.2 million, while Grayscale’s offering contributed an additional $8.3 million. In a landscape where many issuers saw no movement, Grayscale’s ETHE stood out, enduring significant pressure with reported outflows totaling $23.3 million.
Despite the strong inflows into Ethereum funds, the asset is still facing a difficult price environment. As the latest ETF inflows were documented, Ethereum was priced at approximately $2,913.41, struggling to regain the $3,000 threshold after experiencing a decline exceeding 30% over the past month, according to the sources. This vulnerability sharply contrasted with the asset’s price movement when ETFs launched on July 23, 2024, as Ethereum wrapped up the day at $3,418.61. However, the ongoing battle extends beyond just one cryptocurrency. The broader cryptocurrency market is encountering difficulties due to a mix of macroeconomic influences, including the possibility of a U.S. government shutdown, shifting expectations about Federal Reserve rate adjustments, and a dominant risk-averse sentiment among investors. Technical indicators are also reflecting this short-term turbulence. The RSI and MACD suggest a downward trend; however, these signals could merely be fleeting fluctuations rather than signs of a significant structural shift.
Interestingly, this period of weakness has attracted significant Ethereum investors back into the market. After a nearly 9% recovery from its recent low of $2,623, there was a notable increase in whale activity, indicating a significant shift from a month-long downtrend. Data showed that wallets that were once inactive have started moving large amounts of ETH. As Ethereum navigates its own ups and downs, the rivalry in the ETF space is heating up. In a recent update, VanEck has submitted an application for a Spot Binance ETF. Recent SEC filings reveal that the VanEck ETF is set to list on Nasdaq, directly holding BNB and tracking the MarketVector BNB Index.
The fund will not support staking at launch; however, VanEck has indicated that any potential staking features in the future will be managed through third-party providers, with prior notice provided. This announcement came through while the asset was trading at a certain price, reflecting a slight increase over the last 24 hours, yet it remains down over 25% for the month, a trend influenced by the same macroeconomic factors impacting other cryptocurrencies and the broader crypto landscape.