Crypto Investments See Record Inflows—Altcoins Shine as Bitcoin Loses Steam

Key Takeaways

• U.S. spot Bitcoin and Ethereum ETFs command a combined $115.04 billion in net assets.
• Ripple has added over $120 billion to its market cap since the beginning of November.
• Bitcoin’s dominance is down by around 5%, and the Crypto Fear and Greed Index is currently pointing to “Greed.”

The tides of crypto are shifting after Bitcoin’s (BTC) month-long reign over the markets appears to finally be cooling off, giving Ethereum (ETH), Ripple (XRP), and other altcoins a chance to shine.

Bitcoin Dominance

As per the latest CoinShares report , institutional crypto products remain a significant driver of flows, and total digital asset inflows for 2024 have now reached a record-breaking $37.3 billion.

That said, Bitcoin’s dominance is beginning to falter as it continues to test the coveted psychological level of $100,000.

As a result, BTC saw some $457 million in outflows, the largest since the beginning of September.

A drop was anticipated as the billions in weekly net inflows pouring into Bitcoin exchange-traded funds (ETFs) had to cool off at some point.

Between Nov. 1 and Dec. 2, BTC ETFs have recorded $9.11 billion in net inflows, raising their total assets to a gigantic $103.91 billion, representing 5.49% of BTC’s market cap.

This is also reflected in the Bitcoin Dominance chart . On Nov. 3, BTC dominance stood at 59.1% and is down to 54.4% as of Dec. 3.

Ethereum and Alts

As expected, it would appear that a swift round of profit-taking took hold of the market as investors swapped their gains into Ethereum and other altcoins.

Notably, ETH products pulled a solid $634 million, driving year-to-date (YTD) inflows to $2.2 billion.

Ethereum ETFs played a significant role in this week’s results.

Last week, funds recorded their second-largest week of net inflows, totaling $466.53 million.

As of Dec. 2, ETH ETFs command $11.13 billion in net assets.

Ripple also caught major inflows, which has sent XRP’s price and market cap soaring.

After years of having its price suppressed by its lengthy battle with the U.S. Securities and Exchange Commission (SEC), it would appear that an end is in sight.

Now that SEC Chairman Gary Gensler is  set to depart  on Jan. 20, 2025, and a number of spots for XRP ETF  applications are pouring into the regulator, investors are extremely bullish on XRP, which has now overtaken Tether (USDT) as the third-most valuable crypto by market cap with $150.18 billion.