Spot Ethereum ETFs raised $240 million, surpassing the $164 million in daily inflows from Bitcoin ETFs.
Spot ETH ETFs in the U.S. had total net inflows of $240 million on Wednesday, exceeding inflows in BTC ETFs.
Wednesday marks the 18th consecutive day of net inflows.
Analysts attribute the inflows to positive regulatory discussions around DeFi and stablecoins, as well as a spillover effect from Bitcoin.
The spot Ethereum exchange-traded funds (ETFs) in the U.S. recorded over $240.3 million in net inflows on Wednesday, surpassing the $164.5 million in net inflows for spot Bitcoin ETFs. This is the 18th consecutive day of positive flows in spot ETH ETFs.
According to data from SoSoValue, BlackRock's ETHA led Wednesday's inflows with $163.6 million, followed by $37.28 million in Fidelity's FBTC. The Mini Ethereum Trust and Grayscale's ETHE fund also recorded net inflows, along with Bitwise's BITW.
"With the SEC signaling possible exemptions for DeFi, investors are increasingly seeing ETH as undervalued, especially since Bitcoin reached all-time highs and altcoins hit historical peaks last year," said LVRG's research director, Nick Ruck.
The chairman of the Securities and Exchange Commission (SEC), Paul Atkins, recently expressed support for DeFi during the agency's Cryptocurrency Task Force roundtable, stating that the right to self-custody of private property is a "fundamental American value" that should also exist digitally. Interest in DeFi seems to have been further propelled by recent regulatory and private sector advances in stablecoins.
Signifying an increase in investor engagement, Ethereum saw over $106 billion in derivatives trading volume, according to data from Coinglass, surpassing Bitcoin's $80.5 billion.
The price of ether surpassed $2,800 on Wednesday, reaching its highest value since February. The coin fell 0.34% in the last 24 hours, trading at $2,769, according to The Block's Ethereum price page.
The Pectra upgrade of the Ethereum network, introduced earlier this year, addressed scalability and cost-efficiency issues that posed challenges for developers, boosting positive momentum.
"In addition to price movements, institutions are continually turning to the Ethereum ecosystem to launch innovative financial products and solidify their presence in the cryptocurrency market," Ruck said. "This combination of regulatory clarity, institutional adoption, and adaptation to the broader market momentum highlights Ethereum as a promising option for optimistic cryptocurrency investors."
Meanwhile, another analyst noted that Ethereum ETFs are primarily benefiting from a spillover effect of optimism surrounding Bitcoin.
"With investors likely 'full' on BTC, given its dominant narrative and MSTR, we are finally seeing positive contagion spreading to ETH and other cryptocurrencies," said Augustine Fan, Head of Insights at SignalPlus. "The excitement around the Pectra upgrade and the resurgence of DeFi may have contributed to the rally, but they are likely just catalysts that add to a structurally more optimistic risk tone."