Spot ETH ETFs recorded a net inflow of $52 million on Wednesday, the fifth-highest daily figure since the ETFs began trading in July.
ETH’s most recent gains have outpaced those of BTC, SOL, and BNB.
(Shutterstock)
Posted November 7, 2024 at 1:30 pm EST.
The price of ether (ETH) jumped to a three-month high Thursday after Americans elected the pro-crypto Donald Trump to be the next president of the United States this week.
Over the last 24 hours, ETH has climbed 8% to $2,867, a level not seen since the start of August. Its latest 24-hour gains have outpaced those of other major cryptocurrencies such as BTC (up 2.7%), SOL (up 5.3%), and BNB (up 3.3%), data from CoinGecko shows.
“Ethereum…is catching a bid, fueled by expectations that DeFi will make a comeback [following Trump’s win],” Aurelie Barthere, a research analyst at blockchain analytics firm Nansen, told Unchained via Telegram. “We’re seeing some interesting patterns, such as a surge in the ETH/BTC ratio on high volume and a significant spike in ETF new inflows on the day of the election results.”
Read More: DeFi Tokens Jump on Hopes That Trump Will Provide Crypto Regulatory Clarity
The ETH/BTC ratio measures the relative price performance between the two coins. It recently stood at 0.037, up from 0.034 on Wednesday.
On Nov. 6, spot ETH ETFs netflow (inflows minus outflows) stood at nearly $52.3 million, the fifth-largest daily figure since the ETFs debuted in July, according to SoSoValue. Barthere said spot ETH fund inflows are an important indicator of demand. “[The statistic helps] gauge the broader retail adoption of ETH, something that has yet to materialize in a meaningful way since the launch of the ETH ETF,” he said.
Read More: What Gary Gensler Could Still Do Against Crypto in His Remaining Days as SEC Chair
Bullishness for ether stems from Trump’s victory, combined with the GOP gaining the majority in the Senate and the election of several pro-crypto members to Congress. “People are expecting a significant change in the regulatory environment that would benefit ‘real’ projects that have avoided driving value to their token through onchain mechanisms,” Carlos Mercados, a data scientist at Flipside Crypto, told Unchained.
Trump and his family are also closely connected to the nascent Ethereum-based DeFi protocol World Liberty Financial, which started its initial token sale less than a month before the US presidential election. In a temperature check, the governing body of dominant lending protocol Aave overwhelmingly supported deploying the Trump-backed protocol as an instance of Aave in an attempt to provide stablecoin liquidity for Ethereum.
