In December 2023, US spot Ethereum ETFs reached record monthly net inflows. According to SoSoValue, nine Ethereum funds collectively attracted $2.08 billion, significantly surpassing the $1 billion 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. Fidelity’s FETH fund came second with $752 million. Conversely, Grayscale’s ETHE fund faced challenges, reporting a net outflow of $274 million.
Reasons for the Surge in Ethereum Investments
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.
Trends in Ethereum and Bitcoin ETF 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.
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.
