Key Takeaways

Ethereum ETFs have outperformed Bitcoin in the last six days. Inflows are rising, and the stablecoin market cap hit $130B. Will ETH lead in this rally?

Ethereum [ETH] has been up 17% in a week and 65% in the last one month, per CoinMarketCap. Ethereum ETFs are currently dominating the markets in this surge as the altcoin stays above $3,500.

Meanwhile, the SEC gave a signal that could see a shift in the market structure of crypto.

Ethereum ETF inflows outpace Bitcoin

Looking at Ethereum ETF inflows in the six days, the inflows have outpaced those of Bitcoin [BTC]. These sessions have had BTC $2.25B compared to ETH’s which was at $2.9B as of press time.

According to CoinGlass data, the Ethereum ETF inflows hit $533M in the past 24 hours, with BlackRock’s leading while Fidelity’s followed. This took the total to $8.35 Billion. The top sellers were Bitwise and Ark.

Source: CoinGlass

As the inflows surge and threatened BTC’s dominance, the U.S. SEC has also sent a signal for more improvements.

Ethereum ETF for Wall Street?

According to James Seyffart, the SEC gave greenlight to Bitcoin and Ethereum ETFs, obtaining the ability to do in-kind creation and redemption.  This was after the filed amendments by five different funds on CBOE.

However, the retail would not enjoy this redemption. This followed a clarification by James after a user on X asked,

“Would this imply retail have a way to redeem in kind? Guessing brokers would have to support the physical…”

James Seyffart responded,

“No. This is not gonna be for retail or normies to trade in shares of their ETFs for the underlying asset or vice versa. This would only be for the Authorized Participants (think big wall street firms and market makers).”

However, this make the crypto ETFs efficient, but the majority of the current products were doing great. Seyffart added that this would make the crypto ETPs operate like other ETPs.

ETH stablecoin cap hits new peaks

As the inflows surged, it put Ethereum at great position in this cycle as the stablecoin supply on the blockchain hit a record $140B.

This supply had nearly double from January 2024 levels, according to Token Terminal.

As per DefiLlama data, Ethereum led with other chains with Tron [TRX], Solana [SOL], Arbitrum One and Base completing the top 5 list.

Still, ARB and Base are a part of Ethereum’s L2 network, suggesting that the supply could be even more.

Source: Token Terminal

Meanwhile, Tether’s USDT, Circle’s USDC, and Ethena’s USDe constituted the biggest share with 50%, 30% and 5% dominance respectively. This meant that stablecoins’ usage was rising by the day, as Messari highlighted.