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29/11/24
54
Ether ETFs Surge Ahead of Bitcoin Amid Price Rally and Regulatory Optimism
Recent trends show that Ether exchange-traded funds (ETFs) have outpaced their Bitcoin counterparts, attracting significant investment. Between November 22 and November 27, spot Ether ETFs garnered $224.9 million in net inflows, compared to $35.2 million for spot Bitcoin ETFs. This shift comes in the wake of a substantial 8% price increase for Ether, which has surged above $3,590.
The surge in Ether’s value can be partially attributed to a favorable court ruling for Tornado Cash, an Ethereum-based decentralized finance (DeFi) platform. Additionally, speculation about a potential leadership change at the Securities and Exchange Commission could be fostering a more supportive regulatory environment for cryptocurrencies. Recent developments have led some analysts to predict that this week could mark the first instance where US Ether funds surpass Bitcoin ETFs in net inflows.
Ethereum’s performance against Bitcoin has improved over the past week, with Ether prices rising 7.7% while Bitcoin has dropped by 2%. This fluctuation has raised the Ether to Bitcoin price ratio to 0.037 BTC. Despite a slowdown in Bitcoin’s momentum, spot Bitcoin ETFs achieved remarkable results in November, reeling in over $6.2 billion in net inflows, including an impressive $3.1 billion last week.
Several experts suggest that the recent court victory for Tornado Cash has spurred Ethereum’s price rally, as it dominates the DeFi sector. The anticipated changes in SEC leadership, specifically the possibility of Paul Atkins stepping in, could further enhance Ethereum’s outlook. As a dominant player in the DeFi sphere, Ethereum might be seen as a “catch-up trade,” given its earlier lag behind Bitcoin and Solana during this bullish market phase. Furthermore, demand for leveraged spot Ether ETFs has surged by 160% since the election, indicating growing investor interest in Ethereum’s potential for future gains.
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