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Ethereum ETFs Recorded Inflows of $2.1 Billion in December

Ethereum (ETH) spot exchange-traded funds (ETFs) closed out December with record monthly inflows, attracting $2.1 billion. This figure is an 83% increase from the $1.2 billion that ETH ETFs attracted in November, according to SoSo Value data . Since their launch in July 2024, ETH ETFs have amassed a cumulative total of $2.6 billion in inflows and total net assets of $12.1 billion. To continue reading this as well as other DeFi and Web3 news, visit us at thedefiant.io Bitcoin.com

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Tether’s market cap sheds $1.4b as MiCA activates

Tether’s U.S. dollar stablecoin witnessed its biggest downturn since FTX collapsed during the sluggish 2022 crypto market period. On-chain data showed that Tether’s stablecoin ( USDT ) lost approximately 1.2% of its market cap this week as EU digital asset regulations took full effect on Dec. 30. The token’s market cap fell to $137 billion from its December peak of $140 billion, fueling speculation about Tether’s future and potential USDT volatility. Concerns arose that USDT’s operator might exit the European Union now that new laws have been enacted. However, social media sentiment was countered by industry leaders and observers who pointed to data affirming USDT’s resilience outside the EU. You might also like: Tether adds $700m Bitcoin to reserve address Nothing burger Experts and analysts dismissed rumors that the EU’s Markets in Crypto-Assets Regulation would disrupt USDT’s business. Karen Tang, Orderly Network’s head of APAC partnerships, and social media analyst Axel Bitblaze, noted that Asian and U.S. markets maintain USDT’s dominance. About 80% of USDT’s trading volume occurs in Asia, according to Bitblaze. Tang argued that MiCA regulations are more likely to hinder the EU itself, slowing digital asset growth due to “convoluted overregulation.” 4/ But Axel, what about USDT trading volume and the depeg? USDT is the largest stablecoin, with a market cap of $138.5B and a daily trading volume of $44B As of today, 80% of USDT`s trading volume comes from Asia, so the EU delisting won’t have any severe impact. pic.twitter.com/NjxB2iVLhe — Axel Bitblaze ???? (@Axel_bitblaze69) December 29, 2024 Tether plots MiCA compliance Speculation about USDT’s future in the EU intensified in late 2024 after Coinbase and several EU-based exchanges delisted USDT, citing MiCA compliance concerns. While stablecoin rules took effect in July, the full MiCA framework came into force at the end of the year. MiCA requires stablecoin operators to hold certain licenses for e-money tokens and trading asset-referenced tokens, like USDT. So far, Circle ( USDC ) is the first and only major stablecoin issuer to obtain a MiCA license. Tether invested in EU-based companies such as StablR and Quantoz to prepare for regulatory inclusion. CEO Paolo Ardoino has reiterated that the company has no intention of abandoning the EU. While USDT cannot currently be traded on MiCA-compliant exchanges, traders can still store the stablecoin in non-custodial wallets as an interim solution. Read more: Morgan Stanley’s E-Trade ponders crypto services Bitcoin.com