More than $2 billion in net inflows were netted by Ethereum ETF products in December amid record-breaking daily flows
Ethereum exchange-traded funds (ETFs) shattered records in December, drawing over $2.08 billion in net inflows. This is a sharp surge from November’s $1 billion. This milestone highlights renewed investor confidence in Ethereum and its ecosystem. It is fueled by market optimism and fresh capital injections at the start of the year.
BlackRock Leads the Ethereum ETF Charge
Among the nine Ethereum ETFs, BlackRock’s ETHA fund stole the spotlight, raking in an impressive $1.4 billion. The fund experienced 13 consecutive days of positive inflows, cementing its position as a market leader.
Fidelity’s FETH followed closely, securing $752 million in inflows. In contrast, Grayscale’s ETHE fund faced challenges, recording net outflows of $274 million during the same period. Nick Ruck, director at LVRG Research, said the inflows came from new funds and expired positions. He also pointed to changing market expectations as a key factor.
He also noted a resurgence in interest in Decentralized Finance (DeFi) and artificial intelligence (AI) applications within the Ethereum network. These inflows propelled the total cumulative net inflow of Ethereum ETFs to over $2.6 billion.
Also, the total net assets surged to $12.12 billion, accounting for more than 3% of Ethereum’s market capitalization.
December’s inflows coincided with Ethereum’s rally in November. The asset’s price climbed above $4,000 before settling around $3,500 by month’s end. Currently, Ethereum is trading at $3,436, marking a 3.40% gain in the past 24 hours, as per CoinMarketCap data.
Bitcoin ETFs Continue to Dominate
While Ethereum ETFs enjoyed a bullish month, spot Bitcoin ETFs maintained their dominance with $4.5 billion in net inflows for December. However, this was lower than November’s record-breaking $6.4 billion.
Nevertheless, Bitcoin ETFs closed the year with $35.24 billion in net inflows. Its total assets reached $105.4 billion, representing about 5.7% of Bitcoin’s market cap. Bitcoin’s price also reflected strong market activity, reaching an all-time high of $108,135 on December 17.
Currently trading at $96,336, the cryptocurrency has seen a 3.35% increase in the past day, according to CoinMarketCap data. Augustine Fan, Head of Insights at SOFA.org, said traditional finance inflows are the main catalyst behind spot ETF performance.
The rise in Bitcoin and Ethereum ETF inflows shows how crypto is becoming a key part of mainstream investing. It marks a new chapter for digital finance.
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