December 2024 marked a significant milestone for Ethereum (ETH) ETFs in the US as their net inflow reached $2.1 billion, the best monthly performance since their launch in July 2024. Leading the pack is the Ethereum BlackRock ETF (ETHA) with $1.432 billion in inflows, followed by Fidelity (FETH) with $752 million and VanEck (ETHV) with $12 million. Despite a net outflow of $93 million, Grayscale (ETHE) underperformed. In total, the Bitcoin BlackRock ETF (IBIT) led the market with $37 billion in inflows in 2024, surpassing Fidelity (FBTC) with $12 billion. The Ethereum BlackRock and Fidelity ETFs also attracted $3.5 billion and $1.5 billion in inflows, indicating growing investor interest in Bitcoin ETFs. Despite Ethereum ETFs’ positive performance in December, 2024 was a challenging year for this digital currency. Competitors like Solana (SOL) and Tron (TRX) showed significant growth, posing a threat to Ethereum’s blockchain dominance. The report also highlighted the lack of key drivers and risks associated with Validators’ exits, describing Ethereum’s future in 2025 as uncertain. Ethereum only saw a 48% growth in 2024, while Bitcoin’s 120% increase created a significant gap. On the other hand, Ethereum’s staking yield of around 3% is less attractive compared to traditional rates. Moreover, the network’s activity has not reached its previous peak, with weekly transactions around 9 million and active addresses between 300,000 to 400,000. Additionally, Ethereum’s realized price ($2093) is lower than the deposit price for staking ($2383), which may exert further downward pressure on prices. Despite these challenges, increased institutional investor inflows in December indicate the enduring appeal of Ethereum. The current price of Ethereum is $3325, and with the market growth of ETFs, it may benefit from increased liquidity and broader acceptance. Visit the ‘Real-Time Digital Currency Prices’ page to monitor live prices of all tokens and cryptocurrencies.
