Ethereum (ETH) reached a major milestone on Thursday, December 6, as its price touched $4,089 - the highest level seen in almost three years. This surge comes amid unprecedented institutional interest through recently launched Ethereum ETF products.
The ETF market saw exceptional activity with $428.4 million in net inflows on December 5 alone, marking the largest single-day investment since these funds began trading. BlackRock's ETHA and Fidelity's FETH funds led the charge, helping push the weekly inflow total to an impressive $752.9 million in early December.
This wave of institutional investment has shifted market sentiment positively, with the fear and greed index reaching 65, indicating "greed" territory. While Ethereum ETFs initially saw a slower adoption compared to Bitcoin products, November proved to be a breakthrough month with inflows exceeding $1 billion.
The nine available Ethereum ETFs now manage $12.5 billion in total assets, representing approximately 2.7% of Ethereum's total supply. A notable milestone was reached when the State of Michigan Retirement System became the first U.S. state pension fund to invest in an Ethereum ETF, purchasing 460,000 Grayscale Ethereum shares.
The success of Ethereum appears to be paving the way for other digital assets. Major financial firms including VanEck, 21Shares, and Grayscale have submitted applications for Solana ETFs, while companies like WisdomTree and Bitwise are pursuing XRP ETF approvals.
As regulatory attitudes in the U.S. become more accommodating toward crypto investments, the ETF landscape for digital assets shows strong potential for continued expansion, offering investors new ways to gain exposure to the cryptocurrency market.