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The U.S. exchange-traded fund (ETF) market has been revolutionized in 2024 by the launch of spot Bitcoin and Ethereum ETFs, drawing massive inflows and transforming investment dynamics. Among the 740 ETFs launched this year, crypto-related ETFs have claimed the top eight spots for inflows, underscoring the growing mainstream acceptance of digital assets.

Surge in Crypto ETFs Following Trump’s Victory

Donald Trump’s 2024 election victory has further catalyzed the momentum for crypto ETFs. With speculations about crypto-friendly policies and plans to establish a strategic Bitcoin reserve, investor enthusiasm has surged. Leading the charge are spot Bitcoin ETFs and Ethereum ETFs, alongside ETFs tracking MicroStrategy (MSTR) stock, which has performed robustly in 2024.

Prominent offerings such as BlackRock’s IBIT and ETHA products have attracted heavy demand. As of now, the total net asset value (NAV) of spot Bitcoin ETFs stands at a staggering $106.68 billion, per SoSo Value data. This surge highlights a paradigm shift in the financial ecosystem, with cryptocurrencies becoming integral to institutional portfolios.

Mixed Trends: Bitcoin vs. Ethereum ETFs

Last week, between December 23 and December 27, Bitcoin ETFs saw mixed performance. Spot Bitcoin ETFs recorded net outflows of $388 million due to profit-taking and portfolio rebalancing. Despite this, Fidelity’s FBTC ETF bucked the trend, registering a weekly net inflow of $183 million, demonstrating resilience among certain investor segments.

Bitcoin’s price, however, continues to face selling pressure, hovering under $94,000. Analysts like Ali Martinez are optimistic, pointing to a bullish setup contingent on maintaining the critical $93,000 support level.

Meanwhile, Ethereum ETFs have shown contrasting fortunes. Weekly net inflows into Ethereum ETFs hit $349 million, fueled by BlackRock’s ETHA ($182 million) and Fidelity’s FETH ($160 million). Ethereum’s price, currently at $3,400, is also under pressure but on-chain data suggests potential bullish action. According to Martinez, 78.3% of Ethereum traders on BitMEX are betting on upward price movement, reflecting a strong bullish sentiment.

Outlook for 2024

As crypto ETFs continue to dominate inflows, the spotlight remains on Bitcoin and Ethereum’s price performance. With Trump’s victory fueling optimism and increasing institutional interest, 2024 could mark a transformative year for the integration of digital assets into traditional finance.

Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.

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