The month of Moonvember has indeed favored Ethereum [ETH] ETFs, with a reported surge in investments by $515 million as indicated by CryptoCrypto last week.
This significant development did not escape the attention of market analysts, with Eric Balchunas, a senior ETF analyst at Bloomberg, illustrating the ETFs’ trend shift from losses to gains on social media platform X (previously known as Twitter).
Analyzing the sudden recovery of ETH ETFs, Balchunas emphasized the notable shift from persistent outflows to a positive trajectory.
Post-election Positivity Boosts Ethereum ETFs
Following Donald Trump’s win in the 2024 U.S. presidential elections, the crypto market has experienced a notable upsurge, acting as a driver for renewed investor interest in ETH ETFs.
James Seyffart, an ETF analyst at Bloomberg, framed this resurgence in sentiment stating,
“The Ethereum ETF landscape will likely be divided into two eras – Before Trump’s Election (BE) and After Trump’s Election (AE).”
Additionally, Balchunas offered his analysis by stating,
“During the past week, particularly post-election, the flows can be seen as influenced by beta with a hint of bitcoin throughout the entire year.”
Despite indications of a potentially overbought market, investors in ETFs continue to showcase a strong positive outlook.
ETH ETFs Experience a Shift to Outflows
Despite the record inflows observed recently, there appears to be a reversal in trend concerning Ethereum ETFs.
Data from SoSo Value highlighted net outflows towards the end of the previous week, totaling $3.24 million on November 14th and $59.87 million on November 15th.
Continuing into the current week, outflows persisted with an additional $39.08 million withdrawn on November 18th, while only Fidelity’s FETH ETF registered inflows among the nine ETFs.
Contrastingly, the top three ETFs witnessed outflows, with the remaining ETFs experiencing no activity.
If this pattern continues, it could mark a shift from the earlier optimism seen, with ETH ETFs heading towards closing a week in the red for the first time since early November.
ETH Price Faces Market Pressure
Following the initial surge post-election, Ethereum’s price rally seems to have lost momentum, retracting after briefly surpassing $3,400.
Currently trading at $3,116.66, ETH has witnessed a 6.33% decline over the week and a marginal 0.06% dip in the past 24 hours, according to CoinMarketCap.
Futures market insights from Coinglass present a conflicting view, with trading volume up by 57.77%, while Open Interest rose by just 0.76%, reflecting trader hesitancy. The Long/Short ratio of 0.9535 leans slightly towards bearish sentiments, indicating growing uncertainty.
While Ethereum ETFs have been in the spotlight due to significant inflows, recent outflows and price adjustments hint at a market preparing for a period of consolidation.
The key question now is whether this current bullish phase is fleeting or marks the beginning of a longer-term trend.