Is ETH about to explode? Fidelity has put in a lot of effort!
The data for ETH spot ETFs is much faster than BTC, as there are too many institutions on the BTC side, making it really headache-inducing to compile. By the end of 2024, ETH's performance is still acceptable, but to say it is particularly strong would be an overstatement. Grayscale saw a significant outflow on Monday after the market closed, and BlackRock has been silent for two consecutive days, relying entirely on Fidelity to make a last-minute rescue, buying over 9,500 ETH, which prevented the data from turning into a net outflow.
Speaking of capital flow, while BTC also experienced a net inflow, BlackRock saw a net outflow for two consecutive days, and it was Fidelity that stepped in at the last moment, allowing BTC and ETH to have a decent finish. Fidelity's investments are considerable, purchasing a substantial amount of both BTC and ETH, truly not neglecting either side.
ETH's price has been frequently criticized, but recent buying sentiment is quite good. ETH is just lacking an opportunity for a breakout; this opportunity could either come from a general market sentiment increase or from RWA or ETH spot ETF staking bringing favorable news.
In 2024, the ETH spot ETF has truly gone through ups and downs. Initially, expectations for ETH were very high, and after BTC's approval, ETH also saw a rise. However, later on, the SEC tightened regulations on cryptocurrencies, and many people became pessimistic about the ETH spot ETF, with the approval rate expectations dropping to less than 20%. Fortunately, a reversal occurred at the last moment, and it was approved. However, after the approval, the market reaction was tepid, and ETH's price did not follow suit.
From the listing of the ETF until now, over five months have passed, during which ETH experienced a net outflow for more than four months, with Grayscale selling nearly 1.2 million ETH, which is quite a lot! This accounts for 42% of the total. It wasn't until the end of November that it began to turn into a net inflow. BlackRock is the largest buyer, purchasing over 1 million, and Fidelity also bought over 470,000.
By the end of 2024, the holdings of US spot ETFs increased by nearly 560,000 ETH, and three ETFs in Hong Kong also added more than 5,000. It seems that more and more investors are optimistic about ETH's development. After the new government takes office, compliant cryptocurrencies will definitely be more favored by capital. The opportunity for ETH may be right in front of us!
