Ethereum Records $2.2 Billion Inflows in 2024: A New Milestone for the Crypto Giant

Ethereum, the second-largest cryptocurrency by market capitalization, has solidified its position as a dominant force in the crypto market, recording an impressive $2.2 billion in inflows this year. According to a report published by CoinShares on December 2, Ethereum’s 2024 performance surpassed expectations, setting a new benchmark for institutional and retail investor interest.

Ethereum’s Remarkable Performance

Ethereum’s $2.2 billion inflow marks a significant milestone, eclipsing the $200 million recorded in 2021—a tenfold increase. The surge highlights Ethereum's growing appeal as both an investment vehicle and a key player in decentralized finance (DeFi) and smart contract ecosystems.

Bitcoin, the leading cryptocurrency, also showcased strong inflows of $34 billion this year. However, recent weeks have seen profit-taking activity, with $457 million in outflows following Bitcoin's testing of the psychological $100,000 price level.

“Bitcoin saw significant outflows, marking the first since early September. This reflects profit-taking as the cryptocurrency approaches the milestone $100k level,” CoinShares noted in the report.

Performance of Other Crypto Assets

Other digital assets also made notable contributions to the market. Multi-asset investment products attracted $441 million, while Solana (SOL) garnered $110 million in inflows this year.

Despite their overall success, both multi-asset and Solana products faced outflows of $20 million last week. On a month-to-date basis, multi-asset funds experienced outflows of $25.3 million, while Solana bucked the trend with a $40 million inflow.

Ripple’s XRP stood out with $141 million year-to-date inflows, including $95 million in the past week alone. The recent surge in XRP’s popularity is attributed to the hype surrounding its proposed ETF filing with the U.S. Securities and Exchange Commission (SEC). XRP's price also reflected this momentum, surging by 27.38% in a single day of trading.

Leading ETFs Driving Ethereum’s Inflows

Institutional investment products, particularly ETFs, have been pivotal in Ethereum’s 2024 performance. BlackRock’s iShares Bitcoin Trust ETF (IBIT) and iShares Ethereum Trust ETF (ETHA) led the pack, recording inflows of $405 million and $300 million, respectively, this week.

Other significant contributors include the Bitwise Ethereum Strategy ETF (AETH) with $134 million in inflows and Fidelity’s Ethereum Fund (FETH) at $140 million. These figures underscore the growing interest in Ethereum-focused investment vehicles among institutional investors.

Geographical Trends in Inflows

The United States, Germany, and Hong Kong emerged as the leading regions for crypto inflows, highlighting their role as key players in the global digital asset market. Meanwhile, Switzerland, Sweden, and Canada experienced minor outflows, totaling $52 million collectively.

Ethereum’s Bright Future

Ethereum’s $2.2 billion inflow reflects its strengthened position as a cornerstone of the crypto industry. As DeFi, non-fungible tokens (NFTs), and institutional-grade products continue to thrive, Ethereum’s role in shaping the digital economy remains unmatched.

With growing investor confidence and expanding adoption, Ethereum is well-positioned to maintain its momentum into 2025, further solidifying its legacy as a leading asset in the cryptocurrency market.