Bitcoin News Today: Bitcoin's 'Digital Gold' Allure Drives ETF Exodus from Ethereum

Ethereum ETFs faced a second consecutive week of outflows in late October as investors shifted capital back to Bitcoin, deepening the divergence between the two leading cryptocurrencies. According to data from SoSoValue, Ethereum ETFs recorded a net outflow of $18.77 million on October 22, with Fidelity's FETH fund leading withdrawals at $49.46 million. Grayscale's Ethereum Trust (ETHE) and Ethereum ETF (ETH) also saw combined outflows of $79.93 million, underscoring waning institutional interest in the second-largest digital asset, according to Coinpedia.

Bitcoin ETFs, meanwhile, showed resilience, with BlackRock's iShares Bitcoin Trust (IBIT) adding $73.63 million in inflows on the same day, partially offsetting broader outflows of $101.29 million across the asset class. Coinpedia also reported that the contrasting flows highlight Bitcoin's growing dominance in the ETF space, with cumulative net assets reaching $146.27 billion—6.81% of Bitcoin's market capitalization—compared to Ethereum ETFs' $25.81 billion, or 5.66% of ETH's market cap.

The shift reflects broader market dynamics. Bitcoin's price stabilized near $108,630, while Ethereum fell 0.89% to $3,832.38, extending a weeks-long slump. Vincent Liu, CIO of Kronos Research, noted that Bitcoin's institutional appeal has strengthened as Ethereum struggles with softer on-chain activity and price volatility, according to Coin Tribune.

Ethereum's ETF outflows accelerated after a brief July rebound, when the asset briefly outpaced Bitcoin in weekly inflows. However, since mid-October, Ethereum ETFs have seen net redemptions, with BlackRock's ETHA—the largest Ethereum fund—posting $100.99 million in outflows on October 18, as reported by Coin Tribune. Cumulative inflows for Ethereum ETFs stand at $14.35 billion, trailing Bitcoin's $61.87 billion, according to Coinotag.

Bitcoin's ETF leadership was further reinforced by Fidelity's Wise Origin Bitcoin Fund (FBTC), which attracted $57.92 million in October inflows, and Bitwise's BITB, which added $17.41 million, according to Coinpedia. Despite a $101.3 million outflow on October 22, Bitcoin ETFs maintained a weekly inflow of $446 million, driven by BlackRock's IBIT and FBTC, Coin Tribune noted. Total trading volume across Bitcoin ETFs reached $3.34 billion for the week, compared to Ethereum's $1.41 billion, Coin Tribune added.

Market participants are closely watching regulatory developments, including delays in SEC approvals for Cardano and XRP ETFs, which have shifted focus back to Bitcoin and Ethereum. Polymarket data assigns a 77% probability of Cardano ETF approval in 2025, but Bitcoin's first-mover advantage in the ETF space continues to attract institutional capital, according to Coinotag.

As of October 24, Bitcoin traded at $111,600—a 4.5% recovery from its October 11 low—while Ethereum hovered near $3,950, Coinotag reported. With Bitcoin ETFs holding 6.4% of the total supply and Ethereum ETFs controlling 5.55% of ETH's market cap, the ETF landscape is increasingly shaping crypto liquidity and price action, as noted by TradingNews. Investors remain split between Bitcoin's macro hedge appeal and Ethereum's potential for network-driven growth, but for now, capital flows favor the former.