ETH Hits $4,000 Driven by Massive $428 Million ETF Surge
Ethereum Breaks Through The $4,000 Barrier, Amid Record $428 Million ETF Inflows, Growing Institutional Demand, and Accelerating Momentum in the Cryptocurrency Market
Ethereum (ETH), the largest altcoin by market cap, has surged past $4,000, a milestone it had not broken since March. The upward movement comes off recent significant momentum in Ethereum ETF demand, with the cryptocurrency recording its largest-ever daily inflows of over $428 million on December 5.
This uptrend means that Ethereum has now surpassed Mastercard based on the largest assets by market capitalization. Ethereum with a $485 market cap has moved over Mastercard with a market cap of $484B to occupy the 27th spot.
ETH ETF Inflows Boost Ethereum Market Cap
On December 5, spot Ethereum ETFs in the U.S. recorded their largest single-day inflow since creation. A total of nine funds collectively attracted $428.5 million, setting a new record in daily inflows for the asset. This surge extended the Ethereum ETFs’ streak, which started on November 22, to nine trading days of consecutive positive inflows.
The total cumulative net inflows for Ethereum ETFs have now surpassed $1 billion, showing investor optimism in a possible bull run.
BlackRock and Fidelity were the highest contributors to the market inflows. BlackRock’s iShares Ethereum Trust pulled in $292.7 million, bringing its total inflows to an impressive $2.64 billion. Fidelity’s Ethereum Fund also added $113.6 million, while Grayscale’s Ethereum Mini Trust and Bitwise’s ETF contributed $30.7 million and $6.6 million, respectively.
However, Ethereum Trust, a Grayscale flagship, sаw аn outflow of $15.1 million, while other funds rеcordеd zero chаngеs.
Ethereum Outpaces Competitors
Ethereum’s price has jumped by about 51% over the past month, marking a significant recovery following months of underperformance compared to competitors like Bitcoin. According to data from CoinMarketCap, in the last week alone, ETH has gained over 12%, outpacing other major cryptocurrencies.
Despite its recent gains, Ethereum remains 17% below its all-time high of $4,878, recorded in November 2021. However, analysts are optimistic about the price rallying to over $5000 soon. Ethereum is currently trading at $4,028, up 3.19% over the previous day.
The Ethereum rally coincides with Bitcoin’s groundbreaking move past to a new ATH of $100,000. Spot Bitcoin ETFs also recorded substantial activity on December 5, amassing $766.7 million in net inflows. BlackRock’s Bitcoin Trust alone accounted for $770.5 million, balancing Grayscale’s $148.8 million in outflows.
