Ethereum ETFs outpaced their Bitcoin counterparts, recording $332.9 million in inflows compared to Bitcoin’s $320 million.
Ethereum-based investment products have shattered records, hitting $2.2 billion in annual inflows, driven by a renewed wave of interest and a surge in US-based exchange-traded funds (ETFs). CoinShares weekly report reveals that just last week, global Ethereum-focused funds, managed by industry giants such as BlackRock, Fidelity, and Grayscale, netted a remarkable $634 million in inflows.
Notably, the recent dramatic upswing in investor sentiment has already surpassed the previous $2 billion annual inflow record set in 2021 – with December still ahead. The surge in Ethereum’s fortunes stems largely from US spot Ethereum ETFs, which accounted for $466.5 million of inflows last week alone.
Ethereum ETFs Outpace Bitcoin Inflows
James Butterfill, Head of Research at CoinShares, described this shift as a “dramatic turnaround” for Ethereum. Bernstein analysts added their voice to the optimism, highlighting Ethereum’s appeal due to its risk-reward dynamics and the likelihood of US regulators approving staking yields for Ethereum products under what they called a “Trump 2.0” Securities and Exchange Commission.
Despite initial challenges, including significant outflows from Grayscale’s higher-fee ETHE fund, US spot Ethereum ETFs have managed to net $583.8 million in inflows. As of Friday, these funds boasted assets under management of $11 billion. Interestingly, Ethereum ETFs outpaced their Bitcoin counterparts, recording $332.9 million in inflows compared to Bitcoin’s $320 million.
For the first time, Ethereum outshone Bitcoin at such high levels. According to BRN analyst Valentin Fournier, this was a direct reflection of growing investor confidence in Ethereum.
“Ethereum’s performance reflects renewed investor interest, with a 47.15% monthly gain, nearing its ETF announcement peak of $4,095,” Fournier noted.
Altcoins and XRP Lead Market Surge
The broader crypto market has also seen extraordinary growth, with its total market capitalization surging by 72% since the US elections, reaching $3.43 trillion. Beyond Ethereum and Bitcoin’s significant roles, altcoins have started to shine, with Fournier describing this as an “early sign of an alt-season”.
Meanwhile, XRP funds also experienced a record-breaking week, pulling in $95 million in net weekly inflows. This surge came amid a 69% price increase, enabling XRP to reclaim its position as the third-largest cryptocurrency by market cap. Butterfill attributed this trend to excitement over a possible US spot XRP ETF.
Bitcoin, however, faced challenges. Struggling with resistance near the $100,000 mark, its price fell by 7% early last week before recovering to $97,000. The global outflows from Bitcoin-based funds totaled $457 million, with US spot Bitcoin ETFs contributing $135.1 million. Fournier commented on the shifting market sentiment, saying:
“Bitcoin dominance has dropped by 5% over the past 12 days, breaking below the positive trendline established in June 2023.”
Digital asset investment products collectively enjoyed an eighth consecutive week of net inflows, totaling $270 million globally. The US-led this charge, contributing $266 million to the tally. Year-to-date inflows for digital asset funds now stand at a staggering $37.3 billion, signaling robust interest in the space.
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