Net inflows into Ethereum funds hit $2.2 billion in 2024.

Recent data from CoinShares indicates a significant shift in investor sentiment, moving away from Bitcoin (BTC) and toward Ethereum (ETH). Ethereum investment funds have achieved record net inflows of $2.2 billion in 2024, surpassing the cryptocurrency's previous inflow peak of approximately $2 billion recorded in 2021. 

CoinShares highlighted this milestone in its Dec. 2 weekly digital asset fund flows report, describing it as “a dramatic turnaround in sentiment” for Ethereum.  

During the week starting Nov. 26, cryptocurrency investment products experienced net inflows totaling $270 million, pushing total inflows for the year to a record-setting $37 billion. While Bitcoin saw outflows of $457 million—the first significant outflows since September—Ethereum investment products attracted $634 million in inflows, showcasing a marked shift in investor preference.  

Felix Hartmann, founder of Hartmann Capital, views this pivot as a clear indication that Wall Street is now actively participating in the “alt rotation,” with a growing preference for Ethereum over Bitcoin. This trend was echoed by crypto commentator Ethereum Vibin, who noted on social media platform X that Ethereum exchange-traded fund (ETF) flows have surpassed Bitcoin ETF flows for the first time.  

The rise in Ethereum investment inflows coincides with a notable legal victory for Ethereum’s decentralized finance (DeFi) ecosystem in a United States court, reported by Cointelegraph on Nov. 29. This development appears to have boosted investor confidence, further fueling the inflow momentum.  

Beyond Ethereum, other cryptocurrencies have also captured investor attention. XRP, the native token of Ripple, saw nearly $100 million in inflows during the same period, marking its largest ever. CoinShares attributes this surge to growing anticipation around a potential XRP exchange-traded fund.  

On Dec. 1, XRP achieved a major milestone, overtaking Solana (SOL) in market capitalization and subsequently flipping Tether’s USDt (USDT) to become the third-largest cryptocurrency by market cap. This surge in valuation reflects heightened optimism surrounding Ripple’s ongoing projects, including a dollar-pegged, overcollateralized stablecoin initiative, RLUSD.  

The substantial inflows into Ethereum and XRP signal a diversification in investor preferences, with a growing appetite for alternative cryptocurrencies beyond Bitcoin. 

Analysts suggest that these trends could be indicative of a maturing market where institutional interest and innovative developments increasingly drive investment decisions.