Ethereum Sees Record Inflows in 2024: Institutional ETH Demand on the Rise
Ethereum-based investment products have reached a record high in 2024 with a net inflow of $2.2 billion, surpassing the previous peak of $2 billion in 2021. Notably, the inflow of $466.5 million into Ethereum products via U.S.-based exchange-traded funds (ETFs) last week is seen as a sign of a shift in investor sentiment. While a global investment of $634 million flowed into Ethereum, Bitcoin faced an outflow of $457 million during the same period. This trend supports Ethereum's growing appeal, particularly with its staking yield potential and possible U.S. regulatory approvals.
While Bitcoin remained quiet, Ethereum and XRP gained traction. Crypto asset funds recorded a global net inflow of $270 million last week, bringing total inflows to over $37 billion since the beginning of the year. Ethereum's strong performance was further bolstered by significant gains in XRP. XRP funds achieved a record weekly inflow of $95 million, resulting in a 69% price increase. XRP rose to become the third-largest cryptocurrency by market capitalization, triggered by interest in a potential spot XRP ETF in the U.S. and the development of Ripple's over-collateralized stable asset RLUSD.
As Ethereum and XRP gained momentum, Bitcoin struggled against headwinds. The cryptocurrency dropped by 7% last week, briefly falling below $96,000, and Bitcoin's dominance declined by 5% over the past two weeks. Analysts have begun discussing an altcoin season, citing the superior performance of alternative cryptocurrencies like Ethereum and XRP.
In the past month, Ethereum's price has surged by nearly 50%, reaching $3,756. Additionally, after the announcement of a spot ETF this year, ETH reached its highest value of $4,090. Recently, Ethereum's strong performance contrasts with Bitcoin's struggles to maintain dominance, even as it approaches $100,000.
Ethereum's price has seen a 43.88% increase over the last 30 days. The decline in ETH's supply on exchanges indicates that investors prefer longer-term holding. Moreover, large investors have started accumulating ETH, which strengthens positive market expectations. The positive technical indicators for Ethereum suggest that the market is progressing towards an interesting phase.
The continued decline in ETH's supply on exchanges particularly indicates a reduced likelihood of selling among investors. This movement can be seen as a sign of increasing confidence in ETH's price within the market. Ethereum started the week with a rise towards $3,760. While the cryptocurrency has displayed a bearish trend since yesterday, it continues the week down 2.6% at $3,610.