🌋 Spot Ethereum ETFs Record All-Time High Inflows in December
posted 2 Jan 2025
December 2024 set a new benchmark for net monthly inflows into U.S. spot Ethereum ETFs. According to SoSoValue, nine ETH ETFs attracted over $2.08 billion, nearly doubling November’s total of just over $1 billion.
The standout performer was ETHA by BlackRock, which garnered $1.4 billion. Impressively, the fund recorded positive inflows for 13 consecutive days in December. FETH by Fidelity followed closely, adding $752 million.
In contrast, Grayscale’s ETHE fund reported a net outflow of $274 million.
This disparity may stem from differences in management strategies, fees, and investor sentiment about each fund's outlook.
BlackRock’s Ethereum ETF inflows positively impacted its share price. Source: finance.yahoo
Record inflows into spot Ethereum ETFs pushed their total net assets to $12.12 billion, accounting for over 3% of Ethereum’s total market capitalization of $403 billion. This substantial volume of ETF-managed assets significantly influences Ethereum’s market liquidity and stability.
The record-breaking inflows in December coincided with a mid-month rally when Ethereum's price surged past $4,000 before correcting to $3,500. Similar patterns of correlation between ETF inflows and price movements of the underlying cryptocurrency were also observed in the Bitcoin market.
Bitcoin ETFs: A Year-End Overview
Spot Bitcoin ETFs recorded net inflows exceeding $4.5 billion in December, a slight decrease from November's record-breaking $6.4 billion. Despite this, Bitcoin ETFs ended the year with a total net inflow of $35.24 billion and aggregate net assets of $105.4 billion, representing approximately 5.7% of Bitcoin’s total market capitalization. These numbers underscore the growth and maturity of the Bitcoin ETF market.
