In a remarkable turn of events for December, U.S. spot Ethereum (ETH) exchange-traded funds (ETFs) experienced their most substantial monthly net inflows to date. Data from SoSoValue reveals that nine Ethereum ETFs collectively garnered $2.08 billion in net inflows, a significant increase from the $1 billion influx recorded in November.
Which Funds Led the Inflow Surge?
BlackRock’s ETHA fund emerged as the largest contributor, attracting an impressive $1.4 billion following 13 consecutive days of positive performance. In second place, Fidelity’s FETH fund gained $752 million. Conversely, Grayscale’s ETHE fund faced challenges, reporting a net outflow of $274 million.
Why Are Investors Flocking to Ethereum?
According to Nick Ruck, Director at LVRG Research, the surge in inflows is attributed to year-end portfolio adjustments, evolving market sentiments, and a heightened interest in decentralized finance (DeFi) and artificial intelligence applications within the Ethereum space.
Additionally, spot Bitcoin ETFs saw considerable activity, recording a net inflow of $4.5 billion in December, although this fell short of November’s peak of $6.4 billion. For the year, spot Bitcoin ETFs achieved a total net influx of $35.24 billion, culminating in net assets of $105.4 billion.
- BlackRock’s ETHA fund leads with $1.4 billion inflow.
- Fidelity’s FETH fund follows with $752 million.
- Growing interest in DeFi and AI fuels Ethereum’s appeal.
- Spot Bitcoin ETFs also report substantial inflows, totaling $4.5 billion.
The landscape for Ethereum and Bitcoin ETFs is shifting dramatically, driven by evolving market dynamics and increasing institutional participation. As the year unfolds, the interest in these digital asset funds is expected to continue shaping investment strategies.
