Ethereum News Today: Ethereum ETFs Outpace Bitcoin as $1.85B Inflows Fuel 50% Price Surge

US spot Ethereum ETFs have surged ahead of their Bitcoin counterparts, capturing $1.85 billion in weekly inflows compared to just $72 million for Bitcoin ETFs, marking a stark shift in investor preferences [1]. This trend has been driven by Ethereum’s regulatory tailwinds, institutional adoption, and a 16-day consecutive inflow streak for Ethereum-tracked products, with cumulative net inflows nearing $5 billion. The momentum follows the enactment of the GENIUS Act, a stablecoin bill signed into law by President Donald Trump, which has reinforced Ethereum’s role in stablecoin infrastructure and decentralized finance [1].

BlackRock’s iShares Ethereum Trust (ETHA) led the charge, securing $1.29 billion in inflows and reaching $10 billion in assets under management (AUM) in just 251 days—the third-fastest achievement in ETF history. Fidelity’s Ethereum Fund (FETH) added $380 million, pushing its AUM to $2.3 billion. These figures highlight Ethereum’s ability to attract capital amid heightened competition from Bitcoin-focused ETFs [1].

Ethereum’s price has surged over 50% in a month, trading near $3,745 after prolonged underperformance against Bitcoin. Ric Edelman, founder of the Digital Assets Council of Financial Professionals, emphasized the strategic value of Ethereum ETFs for portfolio diversification, noting they are the only alternative to Bitcoin spot ETFs. However, he warned against speculative buying, citing the risks of volatile markets [1].

The gap between Ethereum and Bitcoin ETF inflows has narrowed significantly. In early July, Bitcoin’s 5x larger market cap translated to a 3.5x inflow lead. By last week, the disparity had nearly vanished. Juan Leon of Bitwise Asset Management described the shift as a “short-term inflection point,” though he anticipates Bitcoin ETFs may regain traction in late 2024 as major brokerages like Merrill Lynch and Wells Fargo expand their Bitcoin offerings [1].

Ethereum’s ETF surge underscores growing institutional legitimacy for crypto assets. Bitcoin’s entrenched dominance and broader retail appeal, however, suggest the current outperformance could be temporary. Regulatory clarity, product innovation, and evolving investor preferences have nonetheless positioned Ethereum as a key contender in the ETF landscape [1].

Sources:

[1] [Ethereum ETFs Massively Outpace Bitcoin Funds—Why ETH Demand Is Surging] [https://decrypt.co/331906/ethereum-etfs-massively-outpace-bitcoin-funds]

[1] [Ethereum news today—Ethereum ETFs surge Bitcoin 1.8B inflows post GENIUS Act approval] [https://www.ainvest.com/news/ethereum-news-today-ethereum-etfs-surge-bitcoin-1-8b-inflows-post-genius-act-approval-2507/]

[1] [Ethereum Price Targets $4000 as ETH ETFs Add $5.1 Billion] [https://ground.news/article/ethereum-etfs-outpacing-bitcoin-blackrocks-etha-hits-10b-benchmark]