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Ethereum's price has dropped over 12% recently, influenced by the US Federal Reserve's rate cut and declining interest in spot Ethereum exchange-traded funds (ETFs). After an 18-day streak of positive inflows, US-based ETH ETFs experienced significant net outflows totaling $135 million over two days, with BlackRock's Ethereum Fund leading the losses. As of now, Ethereum is priced at approximately $3,342, reflecting a 2.4% decline in the last 24 hours, highlighting the need for a return to positive ETF inflows to stabilize its value.
Bitcoin exchange-traded funds (ETFs) experienced their largest net outflows since launch, totaling $671.9 million on December 19th, coinciding with a price drop below $100,000. Fidelity’s FBTC led the outflows with $208.5 million, while BlackRock’s IBIT remained stable. This marked the end of a 15-day inflow streak for Bitcoin ETFs and an 18-day streak for Ethereum ETFs.
The crypto industry saw significant growth in 2024, particularly with Base, a layer-2 network from Coinbase, which experienced a 56x increase in user count, contributing 13.7 million new users. Ethereum also performed well, attracting 1.56 million users monthly and 10.9 million super users in DeFi, while Bitcoin's user growth was minimal, with only 935,900 new users despite a surge in prices and the launch of spot Bitcoin ETFs. This disparity highlights the need for networks to enhance on-chain activity to attract and retain users.
Investors withdrew a record $680 million from Bitcoin ETFs, marking the largest outflow in months, as Bitcoin's price fell 5% to around $97,400. This decline follows the Federal Reserve's updated projections, which now anticipate only two rate cuts in 2025, leading to bearish sentiment in the market. Analysts warn that continued selling pressure could further strain market sentiment, with potential volatility ahead if Bitcoin drops below key support levels.
Bitwise has launched the Solana Staking ETP in Germany, offering an annual percentage return of 6.48%, surpassing competitors like 21Shares. While U.S. regulatory challenges persist, optimism for future spot ETF approvals is growing, with expectations of a favorable outcome by the end of 2025. European investors are currently benefiting from innovative Solana-based products as the market evolves.
The US Ethereum spot ETF experienced a significant outflow of $75.1 million, marking the second consecutive day of net withdrawals. BlackRock's ETHA led the trend with $103.7 million withdrawn, while Fidelity's FETH saw a $13 million inflow, and Grayscale's ETHE and ETH recorded inflows of $7.5 million and $8.1 million, respectively.
Ethereum spot ETFs experienced a net outflow of $75.1159 million on December 20, with a net asset ratio of 2.93%. Grayscale's Ethereum Trust ETF saw a net inflow of $7.5055 million, while Fidelity's ETF FETH led with $12.9513 million in inflows. The total net asset value of Ethereum spot ETFs stands at $12.155 billion, with cumulative inflows reaching $2.328 billion.
Bitwise has launched a Solana Staking ETP in Germany, offering an annual percentage yield of 6.48%, surpassing competitors like 21Shares. While U.S. regulatory challenges persist, optimism grows for future spot ETF approvals as demand for Solana-based products increases in Europe. The Solana blockchain continues to gain traction for its efficiency in DeFi and gaming, positioning it as a strong alternative to Ethereum.
The SEC has approved the first spot Bitcoin and Ethereum combo ETFs from Hashdex and Franklin Templeton, set to launch in January with an 80/20 allocation favoring Bitcoin. This marks a significant step in the U.S. crypto ETF market, which has seen substantial inflows, particularly in Bitcoin ETFs. Speculation continues around potential future approvals for Solana and XRP ETFs, though analysts suggest Litecoin and Hedera may come first due to regulatory clarity.
Ethereum's price has dipped below $3,400 amid a broader market downturn, with Bitcoin falling under $96,000. The cryptocurrency has seen a 12.44% decline over the past week, facing increased selling pressure and significant outflows from Ethereum ETFs, including a $58.13 million sell-off by Grayscale. As whales offload tokens to repay debts, the critical support level at $3,035 is under scrutiny, with potential further declines towards $2,942 if the bearish trend continues.
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