Ethereum News Today: Ethereum ETFs Edge Closer to Overtaking Bitcoin in Supply Control

Spot Ether ETFs experienced significant outflows in the past two trading days, totaling $256 million, with Monday’s outflows alone reaching $196.7 million, marking the second-largest daily outflows since the funds’ inception [1]. This follows a trend of capital shifting from Bitcoin (BTC) to Ethereum (ETH), with Ethereum ETFs gaining ground against Bitcoin ETFs in terms of inflows. Data from Hildobby indicates that the ratio of BTC supply versus BTC held in ETFs was at 6.4% as of Monday, compared to 5% for ETH and Ether ETFs [1]. Analysts predict that if the current growth rate continues, Ether ETFs could surpass Bitcoin ETFs in the percentage of total supply held by September [1].

Ethereum's price has faced downward pressure in recent trading sessions, tumbling around 6.5% as of Monday [1]. This comes amid a surge in the Ethereum unstaking queue, which reached an all-time high of 910,000 ETH ($3.9 billion) on Tuesday [1]. Validators now face a minimum wait time of 15 days and 14 hours to unstake their ETH, raising concerns among market observers about potential negative outcomes, including the risk of an "unstakening." Prominent Bitcoin advocate Samson Mow warned that the price of ETH relative to BTC could potentially revert to “0.03 or lower,” with ETH currently trading at 0.036 BTC [1].

Ethereum ETFs are now holding 5.08% of the total ETH supply, a figure that could overtake the 6.38% of Bitcoin held in ETFs if current inflow trends continue [2]. Meanwhile, Bitcoin ETFs also saw outflows, but to a lesser extent, with a $122 million drawdown compared to Ethereum’s $197 million [2]. Analyst Timothy Misir of BRN noted that Ethereum’s failure to break above its November 2021 high of $4,891.70 has prompted investors to take profits, particularly after a 66% surge over the past year [2].

Bitcoin, while also experiencing a pullback from its all-time high of $124,457.12, has continued to attract whale activity, with 20,061 BTC added to wallets holding at least 10,000 coins over the past six days [2]. Despite this, Ethereum’s ETF inflows have outpaced Bitcoin’s in recent weeks, reflecting a broader shift in institutional and retail investor preferences toward ETH [1]. This shift has been further bolstered by the growing number of publicly traded companies purchasing ETH for their corporate treasuries, including entities like SharpLink and Bitmine, which have accumulated over $1 billion in Ethereum each [3].

Ethereum’s dominance in the crypto mindshare rankings further underscores its growing prominence, with the asset commanding 18.62% of market attention—a 84.75% increase over the past seven days [4]. This outpaced Bitcoin’s 15.5% mindshare, which declined slightly during the same period. The surge in attention may indicate increased investor anticipation of Ethereum-related developments, including potential protocol upgrades and ecosystem growth. With institutional demand and market sentiment favoring Ethereum, the asset’s narrative appears to be gaining further traction against its leading competitor.

Source:

[1] Spot Ether ETFs See $197M Outflows, Second-Largest Ever (https://cointelegraph.com/news/ether-etfs-197m-outflows-second-largest)

[2] Ethereum ETFs Lose $197 Million—Even Worse Than Bitcoin (https://finance.yahoo.com/news/ethereum-etfs-lose-197-million-152531921.html)

[3] ethereum, eth, ether currency price (https://www.coinbase.com/price/ethereum)

[4] Ethereum Dominates Weekly Crypto Mindshare, Surging Nearly 85 (https://cryptodnes.bg/en/ethereum-dominates-weekly-crypto-mindshare-surging-nearly-85/)