Key Points
- Ethereum-focused funds draw a record $634 million in weekly inflows, reaching $2.2 billion in annual inflows.
- Ethereum ETFs surpass Bitcoin inflows, with U.S. spot Ethereum ETFs accounting for $466.5 million of inflows in a week.
Investment products based on Ethereum have reached a new high, with annual inflows hitting $2.2 billion. This surge is driven by a renewed wave of interest and a spike in U.S.-based exchange-traded funds (ETFs).
A weekly report from CoinShares indicates that last week alone, global Ethereum-centered funds, handled by industry leaders like BlackRock, Fidelity, and Grayscale, attracted an impressive $634 million in inflows.
Ethereum ETFs Surpass Bitcoin
The recent increase in investor sentiment has already exceeded the previous $2 billion annual inflow record set in 2021. The rise in Ethereum’s fortunes is largely due to U.S. spot Ethereum ETFs, which brought in $466.5 million in inflows in just a week.
James Butterfill, Head of Research at CoinShares, referred to this shift as a “dramatic turnaround” for Ethereum. Analysts from Bernstein echoed this optimism, highlighting Ethereum’s appeal due to its risk-reward dynamics and the potential for U.S. regulators to approve staking yields for Ethereum products.
Despite initial hurdles, including substantial outflows from Grayscale’s higher-fee ETHE fund, U.S. spot Ethereum ETFs have managed to attract $583.8 million in inflows. As of last Friday, these funds had assets under management totaling $11 billion. Interestingly, Ethereum ETFs outperformed their Bitcoin counterparts, drawing in $332.9 million in inflows compared to Bitcoin’s $320 million.
For the first time, Ethereum has outperformed Bitcoin at such high levels. According to BRN analyst Valentin Fournier, this is a direct reflection of growing investor confidence in Ethereum.
Altcoins and XRP Experience Market Surge
The broader cryptocurrency market has also experienced significant growth, with its total market capitalization increasing by 72% since the U.S. elections, reaching $3.43 trillion. Altcoins have begun to shine, with Fournier describing this as an “early sign of an alt-season.”
XRP funds also had a record-breaking week, drawing in $95 million in net weekly inflows. This increase came amid a 69% price surge, enabling XRP to reclaim its position as the third-largest cryptocurrency by market cap. Butterfill attributed this trend to excitement over a potential U.S. spot XRP ETF.
Bitcoin, on the other hand, faced challenges. Struggling with resistance near the $100,000 mark, its price fell by 7% early last week before recovering to $97,000. Global outflows from Bitcoin-based funds totaled $457 million, with U.S. spot Bitcoin ETFs contributing $135.1 million. Fournier commented on the shifting market sentiment.
Digital asset investment products collectively enjoyed an eighth consecutive week of net inflows, totaling $270 million globally. The U.S. led this trend, contributing $266 million to the total. Year-to-date inflows for digital asset funds now stand at a staggering $37.3 billion, signaling strong interest in the space.
