Ethereum has experienced a surge in investor interest, with record net inflows of $2.2 billion in 2024, surpassing its previous 2021 record of $2 billion, according to data from CoinShares. The dramatic increase in Ethereum investments reflects a shift in market sentiment away from Bitcoin, which has been dominant in recent years.

CoinShares’ latest weekly digital asset fund flows report, dated Dec. 2, highlights Ethereum’s newfound popularity. Over the week beginning Nov. 26, Ethereum funds saw $634 million in inflows, while Bitcoin faced outflows of $457 million — its first significant outflows since September. This marks a pivotal moment, with Ethereum emerging as the favoured investment for many.

Altseason on the Horizon?

The move from Bitcoin to Ethereum suggests the potential beginning of an “altseason,” where alternative cryptocurrencies gain traction. Crypto commentator Ethereum Vibin noted that Ethereum’s exchange-traded funds (ETFs) have overtaken Bitcoin ETFs in inflows for the first time, signalling a shift in Wall Street’s focus.

Felix Hartmann, founder of Hartmann Capital, believes the change indicates that institutional investors are now “officially joining the fun” of altcoins, further solidifying Ethereum’s growing appeal.

XRP Sees Record Inflows
In another noteworthy development, XRP saw an influx of nearly $100 million in November, marking its largest ever inflow. This surge is attributed to the potential launch of an XRP ETF and growing optimism about Ripple’s future, particularly with the expected pro-crypto stance of the incoming US administration. XRP has recently overtaken Solana in market capitalisation and now ranks as the third-largest crypto asset, just behind Ethereum.

As 2024 progresses, Ethereum and XRP continue to capture investor attention, indicating a shift in the broader cryptocurrency market.