Ethereum ETFs Outpace Bitcoin with Nearly $3 Billion Inflows in Past Week
In a striking development within the cryptocurrency market, Ethereum exchange-traded funds (ETFs) have dramatically outperformed their Bitcoin counterparts, attracting almost $3 billion in net inflows over the past week. This surge, more than five times the $562 million inflows seen by Bitcoin ETFs during the same period, highlights growing investor confidence in Ethereum-based products.
According to data from research platform SoSoValue, Ethereum ETFs have dominated the inflow charts this week. Notably, Ethereum products saw massive daily inflows: a record-setting $1.02 billion on Monday, followed by $524 million on Tuesday, $729 million on Wednesday, and $640 million on Thursday. By contrast, Bitcoin ETFs experienced fluctuating inflows of $178 million to $2.31 billion throughout the week, but remained significantly behind Ethereum in total volume.
Market analysts attribute this Ethereum ETF momentum to two primary catalysts. Illia Otychenko, lead analyst at crypto exchange CEX.IO, pointed to the rapid expansion of crypto treasury holdings and favorable regulatory guidance on staking. “Crypto treasury companies’ Ethereum holdings have ballooned from $600 million to $11 billion over the past six weeks,” Otychenko said in comments to DL News. This surge in institutional treasury commitments has buoyed confidence, driving substantial capital into Ethereum ETFs.
Additionally, recent guidance from the US Securities and Exchange Commission (SEC) on liquid staking has spurred greater interest. The SEC’s approval two weeks ago of in-kind creations and redemptions for spot Bitcoin and Ethereum ETFs allows fund shares to be exchanged directly for the underlying crypto assets rather than cash. This regulatory shift enhances product transparency, reduces costs, and improves tracking accuracy, making ETFs more attractive for institutional investors.
Ethereum’s price has reflected this bullish sentiment, climbing nearly 19% over the past seven days and approaching its all-time high recorded in 2021. At the time of reporting, Ether was trading at approximately $4,639, reflecting a 1.6% increase in the last 24 hours. Meanwhile, Bitcoin hovers around $119,089, also up 1.6% within the same timeframe, having reached a new high of $124,128 on Thursday.
Nate Geraci, president of ETF Store, highlighted the remarkable ETF inflow days, noting that “three of the top four inflow days since launch have occurred this week” for Ethereum ETFs, underscoring tremendous market appetite.
The recent NFT rally and surging crypto treasury reserves accompany a broader institutional embrace of digital assets. This trend suggests an evolving market dynamic where Ethereum, often regarded as the second-largest cryptocurrency by market cap, is gaining significant traction among sophisticated investors looking for diversified crypto exposure.
As Ethereum ETFs continue to outperform Bitcoin ETFs, market participants are keenly watching upcoming regulatory moves and treasury strategies, which could influence the trajectory of both assets in the weeks ahead.
For further insights and updates on cryptocurrency markets, stay tuned to DL News.
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Lance Datskoluo, Europe-based markets correspondent for DL News, contributed to this report. Contact: [email protected]