Ethereum Surges Past $4,000 as ETF Inflows Set New Records

Ethereum (ETH), the world’s second-largest cryptocurrency, climbed past the $4,000 mark on Friday, a milestone not seen since March. The surge follows record-breaking demand for Ethereum Exchange-Traded Funds (ETFs).

This surge in ETF activity has been fueled by growing investor confidence, spurred by anticipation of favorable cryptocurrency regulations under President-elect Donald Trump. Optimism in November around regulatory clarity has brought "long-awaited enthusiasm" to Ethereum-focused products. This sentiment was clearly reflected in trading volumes, with Ethereum ETFs pulling in over $750 million in total net inflows this week, CoinGlass reports.

The uptick comes as Bitcoin shattered the $100,000 barrier for the first time, overshadowing Ethereum’s performance earlier this year. Ethereum, which has lagged behind competitors like Solana (SOL) and Bitcoin (BTC) in 2023, has now posted the largest weekly gain among major cryptocurrencies, soaring more than 10% in the last seven days.

Despite this momentum, Ethereum is still 17% below its all-time high of $4,878, set in November 2021. As of now, ETH is trading at $4,024, up nearly 4% in the past 24 hours, indicating a renewed appetite for the asset as institutional interest gains traction.

The recent ETF inflows highlight the evolving role of crypto in traditional finance, signaling a pivotal moment for Ethereum and its place in the market.