Ethereum-based investment products have set a record for 2024, reaching $2.2 billion in net inflows, surpassing the $2 billion high in 2021, according to CoinShares. Last week alone, $466.5 million flowed into Ethereum products, largely driven by U.S.-based exchange-traded funds (ETFs). This marks a shift in investor sentiment, with Ethereum attracting $634 million globally while Bitcoin experienced $457 million in outflows. This trend underscores Ethereum's increasing appeal, aided by its staking yield potential and possible U.S. regulatory approval.
Digital asset funds saw global net inflows of $270 million last week, pushing year-to-date inflows to over $37 billion. Ethereum's strong performance was complemented by XRP's significant gains. XRP funds recorded $95 million in weekly inflows, the highest ever for the asset, coinciding with a 69% price surge. XRP also climbed to the third-largest cryptocurrency by market capitalization, driven by optimism over a potential U.S. spot XRP ETF and Ripple’s development of an overcollateralized stablecoin, RLUSD.
While Ethereum and XRP gained traction, Bitcoin faced headwinds. The cryptocurrency saw a 7% drop last week, briefly falling below $96,000 before recovering. U.S.-based spot Bitcoin ETFs recorded $135.1 million in outflows, and Bitcoin's dominance declined by 5% over the past two weeks. Analysts noted a possible "alt-season," with altcoins like Ethereum and XRP outperforming.
Ethereum’s price has surged by 47.15% over the past month, approaching $4,095 following the announcement of its ETF. Its global assets under management now total $11 billion, bolstered by record-breaking inflows, including $332.9 million in a single day. Ethereum’s success contrasts with Bitcoin, which, despite approaching $100,000, has struggled to maintain its dominance.
The broader cryptocurrency market has grown significantly, with a 72% increase in capitalization since the U.S. elections, now valued at $3.43 trillion. This growth has been driven by sustained interest in U.S.-based ETFs and increasing enthusiasm for altcoins. XRP’s rapid rise, Ethereum’s record inflows, and a potential shift in regulatory attitudes have highlighted evolving trends in the market.
The momentum behind Ethereum and other altcoins like XRP is reshaping the dynamics of the crypto industry. Digital asset funds are enjoying their eighth consecutive week of net inflows, reflecting sustained investor interest and confidence. As altcoins continue gaining favor, the broader market signals a changing landscape where assets beyond Bitcoin play a more prominent role.