Spot Ethereum exchange-traded funds (ETFs) in the US ended 2024 on a high note, as they recorded net inflows of over $2.08 billion in December, reaching a historic peak for this asset class.
According to data from SoSoValue, this amount is nearly double the net inflow of just over $1 billion in November.
BlackRock’s ETHA fund experienced an astonishing net inflow of $1.4 billion, marking 13 consecutive days of positive momentum. Fidelity’s FETH fund followed suit with an impressive inflow of $752 million.
In contrast, Grayscale’s ETHE fund went against the trend and reported net outflows of $274 million for the month.
“The significant inflows into spot ETH ETFs can be attributed to the new year bringing new funds, the winding down of positions from last year, and changing market expectations,” said Nick Ruck, director of LVRG Research. Ruck also noted the increasing interest in decentralized finance (DeFi) and artificial intelligence applications in the Ethereum ecosystem.
With December’s inflows, the total net inflows for spot Ethereum ETFs surpassed $2.6 billion, and the total net assets reached $12.12 billion, equivalent to over 3% of Ethereum’s total market cap.
This surge coincided with Ethereum’s rise above $4,000 in mid-December, but the cryptocurrency later settled around $3,500 by the end of the month.
Bitcoin ETFs Also Show Strong Activity
While Ethereum ETFs have been in the spotlight, spot Bitcoin ETFs have also continued to perform well, with net inflows of $4.5 billion in December. Although significant, this figure falls short of the record $6.4 billion inflows in November.
By the end of 2024, Bitcoin ETFs had accumulated total cumulative net inflows of $35.24 billion and total net assets of $105.4 billion, representing approximately 5.7% of the entire Bitcoin market cap.
On December 17, Bitcoin reached a historic high of $108,135, driven by significant inflows from traditional finance (TradFi). “As has been the case throughout the year, TradFi inflows continue to be the dominant driver behind spot performance,” said Augustine Fan, Head of Analytics at SOFA.org.
As both Bitcoin and Ethereum ETFs continue to attract significant institutional interest, analysts expect these instruments to play a critical role in shaping the broader cryptocurrency market throughout 2025.
*This is not investment advice.