From decrypt by Vince Dioquino

Exchange-traded funds invested in Bitcoin and Ethereum in the U.S. are seeing record net inflows, following a bullish November that saw crypto-friendly President-elect Donald Trump take the Whitehouse.

As post-election momentum drives institutional adoption, cumulative flow data indicates steady growth since March 2024. 

The nature of these inflows suggests a maturing market where ETFs are increasingly becoming the preferred vehicle for traditional finance to gain Bitcoin exposure.

According to aggregated data from SoSoValue and CoinGlass, U.S. spot Bitcoin and Ethereum ETFs have seen over $7.54 billion in monthly net inflows.

That's more than $1.5 billion compared to February's record of $6.03 billion for Bitcoin ETFs.

Notably, Ethereum spot ETFs, which went live for trading in July, are gaining ground, with records between November 25 and November 29 seeing a net inflow of $467 million—most of which stems from BlackRock’s ETHA, representing $300 million.

Changing tides for Ethereum

Comparing daily total net inflows, Bitcoin spot ETFs accounted for $320 million, while Ethereum ETFs made $332 million, although the latter only has roughly $11 billion in net assets, compared with Bitcoin spot ETFs, which have almost 10 times in net assets at over $105 billion.

Ether outpaced Bitcoin's price performance during the final week of November, rising 15% compared to Bitcoin's modest 1.7% decline over the same period, according to data from CoinGecko.

However, a comparison between Ethereum's price versus the fully diluted valuation of Bitcoin reveals its fundamental supply-side constraints. Ethereum would need to reach $16,673 (a 4.61x increase) to match Bitcoin's $2 trillion total addressable market cap.

Bitcoin ETFs retain dominance

BlackRock's iShares Bitcoin Trust (IBIT) continues to dominate Bitcoin spot ETFs, accumulating $48 billion in market cap flows since launch, data from CoinGlass shows.

Grayscale's Bitcoin ETF (GBTC) follows with $20.9 billion, though this is being trailed closely by Fidelity's Bitcoin ETF (FBTC) at $19 billion.

The surge in ETF adoption comes as Bitcoin trades near $96,000, approaching but not yet breaching the psychological $100,000 barrier. 

“Bitcoin dominance has dropped by 5% over the past 12 days, breaking below the positive trendline established in June 2023,” Valentin Fournier, a digital asset analyst at Singapore-registered market intelligence firm Bread News, told Decrypt in an email.

“With significant resistance at $100,000, the market is seeing a capital shift towards altcoins, supported by increasing liquidity.”