Ethereum ETFs saw a record-breaking $2.08 billion in net inflows during December, nearly doubling the previous month’s total of just over $1 billion. The surge in investor interest highlights the growing demand for ether-backed financial products and reflects a broader trend of increasing crypto ETF popularity.
December Inflows: A Strong Month for Ethereum ETFs
In December, Ethereum ETFs hit an all-time high with more than $2.08 billion in net inflows, showcasing a remarkable increase from November’s $1 billion. BlackRock’s iShares Ethereum Trust (ETHA) led the charge, bringing in a staggering $1.4 billion. This included an impressive 13 consecutive days of positive inflows, underscoring growing investor confidence in Ethereum.
Fidelity’s Ethereum ETF (FETH) followed suit with $752 million in inflows, while Grayscale’s Ethereum Trust (ETHE) saw a decline of $274 million, highlighting some variation in fund performance. Despite the outflows from Grayscale’s product, the total net inflows for Ethereum ETFs exceeded $2.6 billion for the month, with total assets reaching $12.12 billion. This represents more than 3% of Ethereum’s total market capitalization.
Ether Price Surge Boosts Investor Confidence
The record-breaking inflows coincided with a brief rally in Ethereum’s price. Ether’s value surged above $4,000 mid-month before retracting to around $3,500. As of the latest data, ether trades at $3,409, reflecting a 2.23% increase over the past 24 hours. This positive price movement, combined with institutional investment, fueled the growth of Ethereum-backed ETFs.
While Ethereum ETFs made significant gains, Bitcoin ETFs saw a slight decline in net inflows for December. Spot Bitcoin ETFs recorded $4.5 billion in net inflows, down from November’s $6.4 billion record. Bitcoin’s price peaked at $108,135 on December 17 but retreated to $95,556, which may have influenced the slightly lower inflows during the month.
Despite the overall downturn in the broader crypto market, Bitcoin ETFs saw some positive activity on December 31, with $5.32 million in net inflows, ending a two-day streak of outflows. Fidelity’s FBTC led this rebound with $36.81 million, followed by Bitwise’s BITB and Grayscale’s Bitcoin Mini Trust with $8.68 million and $4.14 million, respectively.
Ethereum ETFs Continue to Outperform in 2024
The strong momentum in Ethereum ETFs isn’t expected to slow down in 2024. BlackRock’s ETHA and Fidelity’s FETH are expected to remain key players, with total inflows of $3.52 billion and $1.56 billion, respectively. Grayscale’s low-fee Ethereum Mini Trust ETF also experienced substantial growth with $608.1 million in inflows, while Bitwise’s Ethereum ETF (ETHW) surpassed $400 million.
In contrast, Bitcoin ETFs also enjoyed impressive success in 2024, with a cumulative $35.66 billion in net inflows, far exceeding earlier industry estimates. However, towards the end of the year, Bitcoin ETFs faced a slight downturn with $1.33 billion in outflows since mid-December.
