Originally published on: December 02, 2024
Ethereum’s Ether (ETH) investment funds have experienced an unprecedented surge in net inflows, totaling $2.2 billion in 2024. This milestone marks a significant increase from the cryptocurrency’s previous net inflow record of approximately $2 billion back in 2021, as reported by CoinShares.
The surge in inflows highlights a notable shift in sentiment towards ETH, as outlined in CoinShares’ latest weekly digital asset fund flows report released on December 2nd.
Overall, cryptocurrency investment products witnessed a total net inflow of $270 million during the week commencing November 26th. This brought the cumulative inflows for the year to a staggering new high of over $37 billion.
According to CoinShares’ data, investor interest seemed to shift from Bitcoin (BTC) to ETH during the week of November 26th. BTC experienced outflows of $457 million, marking its first significant outflows since September, while ETH saw impressive inflows of $634 million during the same period.
Felix Hartmann, founder of Hartmann Capital, views this transition from BTC to ETH as a signal that Wall Street is now “officially joining the fun” of what he terms the “alt rotation”.
Adding to the excitement, Ripple’s XRP also saw a remarkable inflow of nearly $100 million, the largest to date. This surge is attributed to the buzz generated around the potential launch of an exchange-traded fund (ETF) for XRP.
On a market capitalization front, XRP surpassed Solana (SOL) on December 1st and has since overtaken Tether’s USDt to claim the spot as the third-largest cryptocurrency asset by market cap.
This surge in XRP’s value comes amid growing anticipation of pro-crypto developments in the US following President-elect Donald Trump’s win. Investors are eagerly awaiting advancements in Ripple’s overcollateralized stablecoin project, RLUSD.
With such monumental growth in the cryptocurrency industry, industry experts like Kain Warwick of Infinex predict that crypto has four years to grow so extensively that “no one can shut it down”. Stay tuned for more updates on the booming crypto market landscape.
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