Since November 2022, investments in spot Ethereum ETFs in the US have surpassed those in spot Bitcoin ETFs. This trend is attributed to the increase in Ethereum's price and significant legal victories in the DeFi ecosystem.
The Rise of Ethereum ETFs
Ethereum (ETH) has shown significant price growth in recent weeks, particularly following a crucial court ruling in the Tornado Cash case, which bolstered confidence in Ethereum's decentralized finance ecosystem. Additionally, speculation about the potential replacement of SEC Chairman Gary Gensler with the crypto-friendly Paul Atkins further positively impacted the market.
Bitcoin Remains Strong, but Ethereum Rises
Amid the rising interest in Ethereum ETFs, spot Bitcoin ETFs achieved record investments of $6.2 billion in November. Markus Thielen, founder of 10x Research, attributes Ethereum's rise to the Tornado Cash victory and rumors about Paul Atkins. He also pointed out that Ethereum creates buying opportunities due to its recent underperformance relative to Bitcoin and Solana.
Ethereum Market Future and Regulatory Influence
Political developments could influence Ethereum's future. Markus Thielen predicts that a possible presidency of Donald Trump could support DeFi projects. Furthermore, the demand for leveraged Ethereum ETFs has increased by 160%, indicating a rapid rise in investor interest.
The surge in investments in Ethereum ETFs signals great growth potential, driven by regulatory optimism and investor confidence.
