Ethereum ETFs Surge as Bitcoin Sentiment Softens

Ethereum (ETH) exchange-traded funds (ETFs) have witnessed a surge in inflows recently, as investors shift their focus from Bitcoin (BTC). According to the latest data, nine Ethereum ETFs listed in the U.S. have recorded net inflows of $393 million since the start of February, while 11 spot Bitcoin ETFs have seen net outflows of $376 million during the same period.

The rotation towards Ethereum ETFs comes amid a softening sentiment towards Bitcoin. Since U.S. President Donald Trump's inauguration on Jan. 20, the price of Bitcoin has fallen 14% to $95,500, while the price of Ethereum has risen 10% to trade around $2,700 per digital token. Analysts attribute this pivot to Ethereum to a rotation that occurred after Bitcoin hit an all-time high of just over $109,300 on Jan. 20.

Investors are also excited about Ethereum's upcoming "Pectra" upgrade, which aims to optimize the consensus layers of Ethereum and help it better compete against rival Layer 1 protocols. Institutional investors are increasingly allocating capital to ETFs tied to the price movements of Ethereum, with some analysts forecasting that the price of ETH will be above $3,000 by the end of the current first quarter.

While most Wall Street firms do not offer ratings or price targets on Ethereum, the price of ETH has declined 11.82% over the last 12 weeks. However, the crypto has bottomed and recovered about 10% so far in February, indicating a potential rebound in its price.