U.S. spot Ether exchange-traded funds (ETFs) saw their largest daily net inflows ever, totaling $295.5 million. This surge marks a dramatic increase from their previous record of $106 million set on the funds’ opening day. Simultaneously, Bitcoin ETFs experienced a substantial $1.1 billion in daily inflows, underscoring the growing institutional interest in both Ethereum and Bitcoin.

Ethereum ETFs See Massive Growth

The influx into spot Ethereum ETFs was led by Fidelity’s Ether ETF, which alone attracted $115.5 million. BlackRock’s ETHA followed with $101.1 million, while Grayscale’s Mini Ethereum Trust and Bitwise’s ETHW recorded inflows of $63.3 million and $15.6 million, respectively. This brings the total assets of U.S. Ether ETFs to $9.43 billion, approximately 2.4% of Ethereum’s total market cap.

This surge in inflows coincided with a broader rally in the De Fi (decentralized finance) sector, with tokens like Aave, Uniswap, and Lido seeing significant gains. Rachael Lucas, a crypto analyst at BTC Markets, pointed out that these De Fi token rallies indicate growing confidence in the Ethereum ecosystem. She believes this could drive sustained or increased inflows into Ethereum ETFs as institutional investors position themselves ahead of potential regulatory changes.

“Regulatory sentiment seems to be shifting in favor of Ethereum and DeFi assets, boosting institutional interest,” Lucas said. “As the sector matures, Ethereum ETFs are increasingly seen as a way to gain exposure to the broader DeFi market.”

A Surge in Bitcoin ETFs

Meanwhile, Bitcoin ETFs continued their strong performance, attracting $1.1 billion in net inflows on Monday. This marks the second time in November that Bitcoin ETFs have surpassed the $1 billion mark, following $1.38 billion in inflows recorded on November 7.

BlackRock’s IBIT led the way with $756.5 million in inflows, while Fidelity’s FBTC and Ark & 21Shares’ ARKB saw $135 million and $108.6 million, respectively. The total trading volume across the 12 Bitcoin ETFs reached $7.3 billion on Monday, the highest since March 14, 2024. This brings the cumulative net inflows into Bitcoin ETFs to $26.9 billion.

Bitcoin’s price surged 10% in the past 24 hours, reaching $89,455, as investors continue to view Bitcoin as a store of value and hedge against economic uncertainty.

Key Drivers of the Surge

Several factors are contributing to the explosive growth of both Bitcoin and Ethereum ETFs:

1. Institutional Confidence: Both Bitcoin and Ethereum are seeing increasing adoption among institutional investors who view these digital assets as a legitimate alternative to traditional investments.
2. Regulatory Developments: Eased concerns around regulation, particularly with the U.S. Securities and Exchange Commission (SEC), have bolstered investor confidence in these assets.
3. Rising DeFi Interest: The ongoing growth in decentralized finance applications is fueling optimism about the future of Ethereum and its associated financial products like ETFs.

Looking Ahead: Continued Growth?

Experts believe this trend could continue as more institutional players enter the crypto space. Ethereum’s shift to a proof-of-stake consensus mechanism, which is expected to reduce energy consumption and improve scalability, remains a major catalyst for institutional investment. Likewise, Bitcoin’s increasing recognition as a hedge against inflation and a store of value suggests strong demand for Bitcoin-related financial products.

As more investors turn to regulated crypto products like ETFs, both Bitcoin and Ethereum ETFs are likely to see further growth in inflows, with some predicting that these trends could continue well into 2025.