Ethereum ETFs Outshine Bitcoin in December Shake-Up.
December 2024 was a turning point for the crypto investment landscape.
While BlackRock’s Bitcoin ETFs faced record-breaking outflows, Ethereum ETFs emerged as the market’s shining star, drawing unprecedented investor interest.
This shift signals not just a change in preference but perhaps the dawn of Ethereum’s reign in the institutional spotlight.
Bitcoin ETFs: The Fall from Grace
Let’s call it what it is—a brutal December for Bitcoin ETFs.
BlackRock’s iShares Bitcoin Trust ETF (IBIT) recorded a staggering $188.7 million in outflows on Christmas Eve.
Across the U.S., Bitcoin ETFs collectively hemorrhaged $1.5 billion over just four days, a painful reminder that even the “king of crypto” can falter. Is this the end of Bitcoin’s dominance? Perhaps not, but Ethereum is certainly stealing the show.
Bitcoin and Ethereum ETFs are expected to drive the launch of cryptocurrency funds in the United States in 2025.
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Ethereum ETFs: The Rising Star
While Bitcoin was busy taking hits, Ethereum ETFs were raking in $2.5 billion in inflows during December alone. What’s driving this shift? Two key factors stand out. First, Ethereum has been outperforming Bitcoin on both spot and derivatives markets since November. Second, its expanding use cases—particularly in AI applications—are giving investors a reason to bet on its long-term potential.
The ETH/BTC ratio, now at 0.035, suggests Ethereum’s momentum is only growing.
If this trend holds, 2025 could see Ethereum cement itself as the institutional favorite.