Investment products linked to Ethereum have achieved a remarkable milestone in 2024, amassing $2.2 billion in net inflows. This figure eclipses the previous record of $2 billion set in 2021, as reported by CoinShares. In a significant development last week, Ethereum products attracted an impressive $466.5 million in investments, primarily fuelled by the activity of U.S.-based exchange-traded funds (ETFs). Investor sentiment is undergoing a notable transformation as Ethereum draws in $634 million worldwide, contrasting with Bitcoin, which faced outflows totaling $457 million. The growing trend highlights Ethereum’s rising attractiveness, bolstered by its staking yield potential and the prospect of regulatory approval in the United States.
Last week, digital asset funds experienced global net inflows totaling $270 million, bringing the year-to-date inflows to more than $37 billion. The robust performance of Ethereum was further enhanced by the notable gains seen in XRP. XRP funds have seen an unprecedented $95 million in weekly inflows, marking the highest level recorded for the asset, alongside a remarkable 69% increase in price. XRP has become the third-largest cryptocurrency by market capitalization, fuelled by growing optimism surrounding a potential U.S. spot XRP ETF and Ripple’s advancements in creating an overcollateralized stablecoin, RLUSD.
As Ethereum and XRP continued to gain momentum, Bitcoin encountered significant challenges. Last week, the cryptocurrency experienced a notable decline of 7%, dipping briefly below the $96,000 mark before staging a recovery. In recent developments, U.S.-based spot Bitcoin exchange-traded funds (ETFs) have experienced significant outflows totaling $135.1 million. Concurrently, Bitcoin’s market dominance has declined by 5% over the last fortnight. Analysts have observed a potential resurgence in alternative cryptocurrencies, as assets like Ethereum and XRP show more robust performance than their counterparts.
In a notable development, Ethereum’s price has experienced a significant increase of 47.15% in the last month, nearing the $4,095 mark after the announcement of its ETF. The firm has reached a significant milestone, with global assets under management totaling $11 billion. This achievement is attributed mainly to unprecedented inflows, highlighted by an impressive $332.9 million received in just one day. Ethereum’s rise stands in stark contrast to Bitcoin, which, while nearing the $100,000 mark, has faced challenges in sustaining its position of dominance.
The cryptocurrency market has experienced substantial growth, witnessing a 72% rise in capitalization since the U.S. elections, bringing its total value to $3.43 trillion. The surge can be attributed to a persistent interest in U.S.-based ETFs and a rising enthusiasm for altcoins. The swift ascent of XRP, the unprecedented inflows into Ethereum, and a possible change in regulatory perspectives underscore the shifting dynamics within the market.
The rising momentum of Ethereum and various altcoins, such as XRP, is transforming the landscape of the cryptocurrency industry. Digital asset funds have recorded net inflows for the eighth week, indicating investors’ continued interest and confidence. The rise of altcoins indicates a shifting dynamic in the cryptocurrency market, where assets outside Bitcoin are increasingly taking center stage.