US exchange-traded funds (ETFs) focused on Ether notched their biggest single-day inflow as the second-largest cryptocurrency rallied to its highest level in nearly four years.
The spot Ether ETFs collectively pulled in a little over US$1 billion ($1.29 billion) on Monday, according to data compiled by Bloomberg. More than US$8.2 billion has flowed into the nine funds so far this year.
Ether has dragged itself out of the doldrums in recent weeks to advance to about US$4,300, the highest since December 2021, as investors rotate out of Bitcoin. Bitcoin ETFs in the US have suffered outflows of US$502 million since the start of August — even as it hovers within striking distance of an all-time high.
Ether-focused treasury firms have proved a significant source of momentum for the token. These publicly traded companies take their cue from Michael Saylor’s Strategy, their primary purpose being to create larger and larger digital-asset stockpiles.
So-called DATs have so far absorbed over US$15 billion worth of Ether, according to data compiled by StrategicEthReserve.xyz.
See also: When will Singapore see its first crypto exchange listing?
Entities belonging to Founders Fund and managed by billionaire tech investor Peter Thiel have recently taken stakes in two Ether-focused firms. They hold 9.1% of BitMine Immersion Technologies — the largest Ether treasury firm with roughly US$5 billion worth of the token — and 7.5% of ETHZilla, the newly rebranded biotech company formerly known as 180 Life Sciences Corp.
Founders Fund and ETHZilla didn’t immediately respond to requests for comment.
“The proliferation of ETH treasury companies is one of the key reasons behind the renewed interest in ETH,” said Peter Chung, head of research at quantitative trading firm Presto.
See also: China tells brokers to stop touting stablecoins to cool frenzy
He also cited the recent passage of stablecoin legislation in the US and Securities and Exchange Commission Chair Paul Atkins’ “Project Crypto” speech to suggest that Ethereum — the blockchain underpinning Ether — “is well positioned to win Wall Street’s mindshare”.
Trading at US$4,312 as on 8.33am in London, Ether remains about 11% below its November 2021 record of US$4,866.
Chart: Bloomberg
