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Ethereum-focused funds hit $2.2 billion inflows in 2023, surpassing the $2 billion record from 2021.U.S spot Ethereum ETFs dominated, netting $466.5 million last week, aiding Ethereum’s 47.15% monthly gain.XRP funds surged with $95 million inflows, a 69% price rise, reclaiming its third-largest crypto status. 
Ethereum-based investment products have shattered records, hitting $2.2 billion in annual inflows, driven by a renewed wave of interest and a surge in U.S.-based exchange-traded funds (ETFs). CoinShares weekly report reveals that just last week, global Ethereum-focused funds, managed by industry giants such as BlackRock, Fidelity, and Grayscale, netted a remarkable $634 million in inflows.

 
 
 
Notably, the recent dramatic upswing in investor sentiment has already surpassed the previous $2 billion annual inflow record set in 2021 — with December still ahead. The surge in Ethereum’s fortunes stems largely from U.S. spot Ethereum ETFs, which accounted for $466.5 million of inflows last week alone.

 
 
 
Ethereum ETFs Outpace Bitcoin Inflows

 
 
 
James Butterfill, Head of Research at CoinShares, described this shift as a “dramatic turnaround” for Ethereum. Bernstein analysts added their voice to the optimism, highlighting Ethereum’s appeal due to its risk-reward dynamics and the likelihood of U.S. regulators approving staking yields for Ethereum products under what they called a “Trump 2.0” Securities and Exchange Commission.

 
 
 
Despite initial challenges, including significant outflows from Grayscale’s higher-fee ETHE fund, U.S. spot Ethereum ETFs have managed to net $583.8 million in inflows. As of Friday, these funds boasted assets under management of $11 billion. Interestingly, Ethereum ETFs outpaced their Bitcoin counterparts, recording $332.9 million in inflows compared to Bitcoin’s $320 million.

 
 
 
For the first time, Ethereum outshone Bitcoin at such high levels. According to BRN analyst Valentin Fournier, this was a direct reflection of growing investor confidence in Ethereum.

 
 
 
 
“Ethereum’s performance reflects renewed investor interest, with a 47.15% monthly gain, nearing its ETF announcement peak of $4,095,” Fournier noted.

 
 
 
 
Altcoins and XRP Lead Market Surge

 
 
 
The broader crypto market has also seen extraordinary growth, with its total market capitalization surging by 72% since the U.S. elections, reaching $3.43 trillion. Beyond Ethereum and Bitcoin’s significant roles, altcoins have started to shine, with Fournier describing this as an “early sign of an alt-season.”

 
 
 
Meanwhile, XRP funds also experienced a record-breaking week, pulling in $95 million in net weekly inflows. This surge came amid a 69% price increase, enabling XRP to reclaim its position as the third-largest cryptocurrency by market cap. Butterfill attributed this trend to excitement over a possible U.S. spot XRP ETF.

 
 
 
Bitcoin, however, faced challenges. Struggling with resistance near the $100,000 mark, its price fell by 7% early last week before recovering to $97,000. The global outflows from Bitcoin-based funds totaled $457 million, with U.S. spot Bitcoin ETFs contributing $135.1 million. Fournier commented on the shifting market sentiment, saying,

 
 
 
 
“Bitcoin dominance has dropped by 5% over the past 12 days, breaking below the positive trendline established in June 2023.”

 
 
 
 
Digital asset investment products collectively enjoyed an eighth consecutive week of net inflows, totaling $270 million globally. The U.S. led this charge, contributing $266 million to the tally. Year-to-date inflows for digital asset funds now stand at a staggering $37.3 billion, signaling robust interest in the space.

Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
With over 3 years of crypto writing experience, Bena strives to make crypto, blockchain, Web3, and fintech accessible to all. Beyond cryptocurrencies, Bena also enjoys reading books in her spare time.
