Ethereum ETFs See Record $2.1 Billion Inflows in December

Ethereum (ETH) spot exchange-traded funds (ETFs) made headlines in December, pulling in a record-breaking $2.1 billion in monthly inflows. This marks an 83% jump from November’s $1.2 billion and highlights growing investor interest in Ethereum as the cryptocurrency market evolves.

ETH ETFs Amass Billions in Cumulative Inflows

Since their debut in July 2024, Ethereum ETFs have gained momentum, raking in a cumulative total of $2.6 billion. As of now, their total net assets stand at an impressive $12.1 billion, according to data from SoSo Value.

December’s surge in inflows is linked to Bitcoin (BTC) nearing its historic $100,000 milestone, with many investors shifting their focus to Ethereum as a promising alternative. Davis Richardson, a consultant at Paradox Public Relations, attributed this trend to Ethereum’s strong fundamentals and growing institutional appeal.

“After Bitcoin reaches record highs, investors often pivot to Ethereum, viewing it as the next logical choice,” Richardson explained.

Regulatory Support and Strategic Investments

The regulatory environment in the United States has also played a key role. President-elect Donald Trump’s financial initiatives, including the “World Liberty Financial” project, have reportedly been accumulating Ethereum through visible on-chain transactions.

Moreover, Trump’s SEC pick, Paul Atkins, is expected to foster a favourable stance towards digital assets, further bolstering investor confidence in Ethereum-focused ETFs.

BlackRock and Fidelity Lead the Way

Among the major players in the ETH ETF market, BlackRock’s ETHA fund emerged as the clear leader in December. It attracted $1.4 billion over 13 straight days of positive contributions, setting a high bar for its competitors. To date, ETHA has accumulated $3.5 billion in net inflows.

Fidelity’s FETH fund also showed strong performance, bringing in $752 million in December, bringing its total net inflows to $1.6 billion.

In contrast, Grayscale’s ETHE fund saw net outflows of $274 million during the same period. This setback dropped its cumulative net inflows to $600 million, underscoring shifting investor preferences.

Key December Inflow Data:

• BlackRock ETHA: $1.4 billion in December, $3.5 billion total inflows
• Fidelity FETH: $752 million in December, $1.6 billion total inflows
• Grayscale ETHE: $274 million in December outflows, $600 million total inflows

Richardson believes BlackRock’s ETHA fund has yet to fully tap into its potential, noting that the firm hasn’t even launched a formal marketing campaign for the product. “When that happens, expect inflows to skyrocket further,” he said.

Mixed Market Sentiments

Despite December’s stellar inflows, Ethereum ETFs experienced sporadic outflows on Dec. 19, Dec. 20, and Dec. 30. These coincided with the Federal Reserve’s cautious stance on future interest rate cuts for 2025, which triggered a broad market selloff.

However, the outflows did little to dent December’s overall performance, with inflows remaining consistent from Nov. 22 onward.

ETH Price Trends in December

Ethereum’s price also saw volatility during the month. After rallying above $4,000 mid-December, ETH retraced to $3,500 before ending the month trading around $3,409. This represents a modest 3% daily gain and a 2.4% weekly increase, according to CoinGecko data.

The Road Ahead

December’s record inflows reflect growing institutional interest in Ethereum as a vital part of the cryptocurrency ecosystem. As more investors embrace ETH ETFs and regulatory frameworks solidify, the stage is set for continued growth.

However, market watchers remain cautious, noting the impact of macroeconomic factors like Federal Reserve policy and overall crypto market sentiment. Still, with heavyweights like BlackRock and Fidelity driving innovation and adoption, Ethereum ETFs are poised for another strong year in 2025.