Ethereum ETFs Surge with $333M Inflows, Outperforming Bitcoin Funds Amid Growing Catch-Up Momentum.

The positive outlook for decentralized finance (DeFi) and a more favorable regulatory environment under the incoming U.S. administration have contributed to a shift in sentiment towards ether, according to LMAX strategist Joel Kruger.

On Friday, U.S. spot ethereum (ETH) exchange-traded funds (ETFs) saw their largest daily inflows, signaling that ether is gaining traction as a catch-up trade after having significantly lagged behind bitcoin (BTC) this year.

In total, the nine ETH ETFs recorded $332.9 million in net inflows during the shortened trading session, according to data from Farside Investors. BlackRock’s iShares Ethereum Trust (ETHA) and Fidelity’s Ethereum Fund (FETH) were the largest contributors, attracting $250 million and $79 million, respectively.

This marked the fifth consecutive session of net inflows for this group, capping off the second strongest week, with $455 million in inflows, as reported by SoSoValue data. The week was shortened due to the closure of U.S. traditional markets for Thanksgiving on Thursday.

Ether ETFs outpaced their bitcoin counterparts, which saw $320 million in inflows on Friday but faced net outflows over the course of the week.

After a period of underperformance in comparison to bitcoin, ether has made a strong comeback, with rising interest driven by Donald Trump’s election victory and renewed enthusiasm for altcoins and DeFi projects.

Along with strong ETF inflows, open interest in CME ether ETF futures has reached record levels, nearing $3 billion, according to CoinGlass data, highlighting growing institutional confidence in the asset.