According to a recent report by CoinShares, Ether (ETH) investment funds have seen record net inflows of $2.2 billion in 2024, surpassing the cryptocurrency’s 2021 net inflow record of roughly $2 billion.
A Dramatic Turnaround in Sentiment for ETH
The record inflows reflect a dramatic turnaround in sentiment for Ether, according to CoinShares’ Dec. 2 weekly digital asset fund flows report. This significant shift in investor interest is a positive sign for the Ethereum ecosystem and its native token.
Cryptocurrency Investment Products See Net Inflows of $270 Million
Overall, cryptocurrency investment products saw net inflows totaling $270 million during the week starting Nov. 26, taking total inflows for the year to a new record of more than $37 billion, according to the data. This surge in investor interest is a testament to the growing popularity and acceptance of cryptocurrencies as a viable investment option.
Early Signs of Altseason?
During the week of Nov. 26, investor interest seemed to swing from Bitcoin (BTC) to ETH, based on CoinShares’s data. Bitcoin saw outflows of $457 million — the cryptocurrency’s first significant outflows since September — while ETH saw inflows of $634 million during the same period.
Felix Hartmann, founder of Hartmann Capital, believes the pivot from BTC to ETH is a signal that Wall Street is "officially joining the fun" on the "alt rotation."
ETH ETF Flows Outpace BTC ETF Flows
ETH exchange-traded funds (ETFs) have seen more money from investors than their Bitcoin counterparts since Nov. 22, according to an Xpost by crypto commentator Ethereum Vibin.
This development is significant, as it indicates a growing interest in ETH-based investment products over traditional Bitcoin-based ones.
XRP Sees Largest Ever Inflows of $100 Million
Notably, XRP (XRPRP) saw inflows of nearly $100 million, the largest ever, which CoinShares says is "due to hype surrounding the potential for a [exchange-traded fund]."
This surge in investor interest has propelled XRP to new heights, with its market capitalization surpassing that of Solana (SOL) and Tether’s USDt (USDT).
Ripple’s Dollar-Pegged Stablecoin Project Gains Momentum
The native asset used by blockchain payments firm Ripple has surged to a new 2024 high as investors anticipate pro-crypto developments in the US under President-elect Donald Trump.
Investors are also eagerly awaiting progress on Ripple’s dollar-pegged, overcollateralized stablecoin project, RLUSD.
What Does This Mean for Cryptocurrency Investors?
The record net inflows of $2.2 billion into ETH investment funds and the growing interest in alternative cryptocurrencies like XRP signal a significant shift in investor sentiment.
This trend is likely to continue, with more investors flocking to Ethereum-based investment products and altcoins in search of higher returns and diversification opportunities.
Expert Insights
Kain Warwick, founder of Infinex, believes that "crypto has 4 years to grow so big ‘no one can shut it down’." This sentiment is echoed by many experts, who see the current trend as a positive sign for the cryptocurrency market’s long-term prospects.
Conclusion
The record net inflows of $2.2 billion into ETH investment funds and the growing interest in alternative cryptocurrencies like XRP signal a significant shift in investor sentiment. As more investors flock to Ethereum-based investment products and altcoins, it is likely that this trend will continue.
Investors should keep a close eye on these developments and consider diversifying their portfolios with a mix of traditional assets and cryptocurrency investments.
Related Articles
- Ripple’s XRP Surges to 2024 High Amid Trump Win, Stablecoin Optimism
- Crypto Has 4 Years to Grow So Big ‘No One Can Shut It Down’: Kain Warwick, Infinex
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