ETF frenzy resumes, Ether Square spot ETF sees record inflows

The optimistic sentiment that has swept Wall Street has prompted investors to pour a record $1 trillion into US exchange-traded funds (ETFs) in 2024 to date, surpassing the $903 billion in 2021, marking another milestone for the industry.

The ETF frenzy will rise again in 2024

The market frenzy reached a fever pitch in November as people believed that the election of President Trump's government and its support for tax cuts would further boost the capital markets, sending stocks soaring to new highs. According to Bloomberg, November was the best performing month of the year for the S&P 500 index, with record inflows of ETF funds reaching $155 billion, averaging about $7.3 billion per day.

ETF analyst Eric Balchunas of Bloomberg said that the historic monthly volume in November, with only 21 trading days, is astonishing. He attributed this prosperity to the 'rise of Trump'.

There may be more types of ETFs in the future.

In fact, the ETF frenzy started long before Trump's victory, as issuers continuously package more complex strategies. This year, actively managed funds and funds that use derivatives or leverage to generate returns account for over 80% of new issuance funds. In addition to a range of new products, the first batch of Cryptocurrency ETFs that directly hold BTC also experienced record demand.

Balchunas said that there may be more positive catalysts in the future, including regulatory agencies approving the creation of more ETF stock categories and alternative investments. He said that despite this, the combined factors driving the market to achieve historic highs may be unique to 2024.

Ether Market ETF Creates Record

According to the data from SoSoValue, the EtherSquare spot ETF set a record high net inflow of $428 million on 12/5 since Trump won the election on November 5th, with a 61% surge in ETH, outperforming BTC. This is due to the Rebound caused by the market's expectation of more friendly regulation for encryption currencies.

Trump appointed Paul Atkins as Chairman of the US Securities and Exchange Commission, which has brought momentum to Ethercoin. ETFs investing in the Token do not allow staking on the Ether network, which has dropped investors' returns. Some observers expect that under Atkins' leadership, this obstacle may be eliminated.

Nick Forster, founder of the cryptocurrency trading platform Derive.xyz, said that while BTC has reached $100,000, Ethercoin is still far below its historical high since 2021. Investors are beginning to adjust the cryptocurrency risk curve.

In addition, the open position contracts of the Ether futures contracts of the Derivatives exchange of CME have skyrocketed to a record level, far exceeding the increase of similar contracts of BTC. Le Shi, Managing Director of Auros in Hong Kong, said that US institutions are more inclined towards regulated investment vehicles, so CME Ether futures and ETFs of the token are more concentrated.

This article ETF frenzy resurgence, Ether square spot ETF funds flow into a record first appeared in Chain News ABMedia.