In a major market development, Ethereum (ETH) breached the $4,000 mark for the first time in over ten months, closing the first week of December with a remarkable 40% week-over-week gain. This growth is closely tied to the broader growth in the cryptocurrency market, especially Bitcoin (BTC), which recently reached up-to-date highs. all-time highs.

Ethereum surges 61% as ETF demand surges

According to According to Bloomberg, Ethereum Exchange Traded Funds (ETFs) in the United States have seen unprecedented demand, recording daily inflows of $428 million on Thursday alone.

This surge in investment interest reflects growing confidence in Ethereum, especially after Donald Trump’s November 5 election victory, which sparked bullish sentiment around the world. cryptocurrency landscape. Since then, Ethereum has outperformed Bitcoin, boasting a staggering 61% escalate in value.

The meeting Paul Atkins’ appointment as head of the Securities and Exchange Commission (SEC) has further strengthened enthusiasm for Ethereum. Atkins, a supporter of pro-crypto regulation and an advisory board member of the Token Alliance advocacy group, is seen as a positive force for the crypto industry.

Bloomberg suggests that under his leadership, restrictions preventing investors from earning profits from staked Ether through ETFs could be reconsidered, making these investment vehicles more attractive.

Altcoin season is in full swing

Nick Forster, founder of cryptocurrency trading platform Derive.xyz, noted: “Now this Bitcoin has reached the $100,000 level, it appears that investors are looking for another opportunity.”

Forster emphasized that Ethereum remains well below its all-time high of $4,878 reached in November 2021, prompting many investors to shift their focus and explore the profit potential of altcoins like ETH.

The growing interest in Ethereum is also evident in the derivatives market, where open interest in Ether futures contracts on CME Group Inc. has reached an all-time high, far outpacing the growth of Bitcoin futures.

Le Shi, managing director of market maker Auros, noted that U.S. institutions tend to favor regulated investment vehicles, resulting in greater business concentration on CME Ether futures and ETH ETFs.

Additionally, Glassnode’s founders Yan Allemann, Jan Happel and Rafael Schutlze-Kraft pointed on the resilience of altcoins in the face of Bitcoin’s recent volatility.

Even though Bitcoin saw a 13% decline, altcoins largely held their value, indicating good market sentiment. The Altcoin Index further reaching 100 confirms that the market is in the middle of “altcoin season”, with expectations for significant moves as the weekend approaches.

Looking ahead, the outlook for the market’s second-largest cryptocurrency remains hopeful, with rising expectations for institutional and retail investment as the current market cycle unfolds.

Analysts have already done this predicted that gains could soon exceed Ethereum’s previous all-time high price, setting the stage for a potentially transformative period in the cryptocurrency market.

At the time of writing, ETH is trading at $3,990.

Featured image from DALL-E, chart from TradingView.com