Ethereum exchange-traded funds (ETFs) are experiencing a substantial inflow surge this December, amassing $1.66 billion in new investments. This accounts for 74% of the $2.24 billion total inflows recorded since their debut. BlackRock’s iShares Ethereum Trust (ETHA) has emerged as the leader, attracting a single-day record of $292 million on December 5, further cementing BlackRock’s dominance in the crypto ETF sector.
Fidelity’s FETH follows as the second most popular Ethereum ETF, though it consistently lags behind ETHA in inflows. Other Ethereum ETF providers have seen limited uptake, contrasting with the more evenly distributed inflows observed in Bitcoin ETFs.
The Ethereum ETF market is currently highly concentrated, with total assets under management (AUM) reaching around $11 billion. Grayscale’s ETHE remains a major player, holding over $5 billion in AUM, but it has recently faced steady outflows, indicating a potential shift in investor preferences.
The surge in Ethereum ETF inflows reflects growing institutional interest in diversifying crypto exposure beyond Bitcoin. With Ethereum’s market capitalization at approximately $474 billion, the increasing inflow-to-market-cap ratio signals rising confidence in Ethereum as a financial asset.
The dominance of major providers like BlackRock highlights the continued reliance on traditional financial platforms for accessing crypto markets, underscoring their vital role in driving adoption.