Ethereum ETFs Boom: BlackRock and Fidelity Dominate $855M Inflows Week
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Ethereum spot exchange-traded funds (ETFs) recorded their highest-ever weekly inflows, totaling $855 million from December 9–13, 2024. This marks a significant milestone for Ethereum, reflecting heightened institutional interest and confidence in the cryptocurrency market. Leading the charge, BlackRock’s ETH ETF (ETHA) attracted $523 million in net inflows during the week.
Fidelity’s FETH ETF followed closely, securing $259 million in investor funds over the same period. Grayscale’s ETHE also gained notable traction, drawing substantial interest amidst the wave of inflows. These ETFs solidified Ethereum’s position as a top choice among institutional investors.
Rising Demand Pushes Ethereum Price Toward $5,000
Ethereum’s strong performance in the ETF market comes amid bullish price activity. The cryptocurrency traded at $3,965 on Monday, a 1.8% increase in 24 hours fueled by rising demand and network activity. Analysts predict that Ethereum could surpass $5,000, driven by robust supply-demand dynamics.
A CryptoQuant report supports this optimism, highlighting Ethereum’s realized price at $5,200, an upper valuation target. Strong investor sentiment, coupled with growing interest in ETH-backed ETFs, reinforces the likelihood of a rally. Ethereum remains the second-largest cryptocurrency by market capitalization, a key factor attracting institutional investments.
Grayscale Achieves $5.37B in Ethereum Assets
Grayscale’s ETHE ETF achieved a major milestone, ranking fourth in the Top 25 ETFs by asset size. The fund, managed by Grayscale Advisors, now holds $5.37 billion in assets under management. This achievement underscores the rapid growth of cryptocurrency ETFs since the SEC approved Bitcoin ETFs in January 2024.
The SEC’s decision to greenlight Ethereum ETFs in July 2024 further boosted the adoption of crypto-backed financial products. This regulatory support has spurred institutional participation, driving significant inflows into funds like BlackRock’s ETHA and Fidelity’s FETH. As a result, Ethereum ETFs continue to gain momentum, reshaping the investment landscape.
Ethereum’s performance in both price and institutional adoption signals its growing prominence in the financial ecosystem. The record-breaking inflows into spot ETFs highlight the cryptocurrency’s appeal as a long-term investment. With sustained growth in demand and network activity, Ethereum remains well-positioned for further gains.
