In an impressive display of investor confidence, ETH Spot ETFs achieved a record $837 million in weekly inflows between December 2 and 6, 2024. Leading the charge was BlackRock’s ETHA fund, which attracted $573 million alone, showcasing the growing institutional appetite for Ethereum as a long-term asset. This surge coincides with Bitcoin ETFs also seeing remarkable traction, recording $2.73 billion in net inflows during the same period.
A Landmark Moment for Ethereum Spot ETFs
ETH’s spot ETF inflows highlight the increasing acceptance of the asset among institutional investors. According to data from Sosovalue, these inflows marked ten consecutive days of sustained activity, solidifying Ethereum’s position as a durable and appealing investment for portfolio diversification.
BlackRock’s ETHA fund led the way, capturing 68% of the weekly inflows into ETH ETFs. This milestone reflects the expanding role of ETH in institutional portfolios, particularly as investors seek exposure to its evolving ecosystem and potential for significant long-term growth.
$ETH’s active addresses are up 36% since Nov 5, showing real growth and rising confidence post-elections. 🔥
A 70% price surge backed by strong network activity?
Feels like the start of something bigger. 🚀 pic.twitter.com/a7Isbrp3yN
— Kyledoops (@kyledoops) December 8, 2024
Bitcoin ETFs Dominate with $2.73B Weekly Inflows
While ETH’s record-breaking performance garnered attention, Bitcoin ETFs remained dominant, achieving $2.73 billion in net inflows last week. BlackRock’s IBIT fund played a major role, accounting for $2.63 billion of these inflows. These figures underscore Bitcoin’s continued status as the “digital gold” for institutional investors seeking regulated exposure to the cryptocurrency market.
Bitcoin’s ETF growth reflects broader confidence in its role as a store of value and hedge against macroeconomic uncertainties. The inflows are also indicative of growing institutional recognition of cryptocurrencies as a legitimate asset class, bolstered by the increasing availability of regulated investment vehicles.
The soaring inflows into ETH and Bitcoin ETFs signify a broader trend of institutional adoption. ETH’s appeal stems from its multifaceted utility in decentralized finance (DeFi), smart contracts, and tokenization. These attributes make it a unique proposition for investors looking to diversify beyond Bitcoin.
Meanwhile, Bitcoin continues to attract attention as a proven asset with a clear value narrative. The substantial inflows into both Bitcoin and ETH ETFs demonstrate a maturing market where institutional players are driving momentum.
What’s Next for Crypto ETFs?
The record-breaking inflows for both ETH and Bitcoin ETFs highlight the rapidly evolving landscape of cryptocurrency investments. As more asset managers, including giants like BlackRock, embrace crypto-focused funds, the accessibility and appeal of these assets are likely to grow.
For Ethereum, the continued development of its ecosystem, including the expansion of DeFi and Ethereum 2.0’s scalability improvements, could attract further institutional interest. For Bitcoin, its “digital gold” status and perceived reliability will likely maintain its dominance in the ETF space.
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