Ethereum News Today: Institutional Capital Favors Ethereum Over Bitcoin in Record Inflows

Ethereum has outpaced Bitcoin in terms of fund inflows, capturing 77% of the $3.75 billion net inflows into digital asset investment products last week, according to CoinShares' latest weekly report. This marked one of the largest weekly gains in history and lifted the total assets under management (AuM) for crypto investments to a record $244 billion. Ethereum’s dominance was primarily driven by inflows into the iShares Ethereum Trust ETF (ETHA), which accounted for over $2.3 billion of the total inflows. The BlackRock product has now attracted a record $11 billion in new capital this year, significantly outperforming Bitcoin-focused funds, which saw only $522 million in inflows for the same period.

Ethereum’s inflows represented 29% of its AuM, compared to 11.6% for Bitcoin, even though Bitcoin remains the largest asset by AuM at $180.7 billion. The surge in Ethereum ETF inflows has been particularly notable in the U.S., where nearly all the $3.75 billion in inflows originated. BlackRock’s ETHA and Fidelity’s Ethereum Fund (FETH) have been the primary beneficiaries, with ETHA alone attracting nearly $1 billion on a single day in mid-August, the largest daily inflow since the product launched. Over the five-day period, Ethereum ETFs recorded a total of $3.37 billion in inflows, more than three times the $966 million into Bitcoin ETFs during the same timeframe.

The strong inflows into Ethereum ETFs have coincided with a rally in the price of ETH, which has surged nearly 29% over the past seven days and approached $4,700 for the first time since November 2021. According to analysts, the increased institutional demand is attributed to Ethereum’s utility as a platform for smart contracts and its yield-generating features, which set it apart from Bitcoin. Senior ETF analyst Eric Balchunas of Bloomberg has noted that Ethereum ETFs have “stepped up big,” with weekly trading volumes surpassing previous records. The $17 billion in weekly volume attributed to Ethereum ETFs in mid-August was a significant milestone, surpassing prior expectations and highlighting the asset’s growing appeal in the institutional space.

In addition to Bitcoin and Ethereum, other altcoins such as XRP and Solana have also seen strong inflows, with combined inflows exceeding $300 million in the latest week. XRP and Solana now manage over $5 billion in assets, with year-to-date inflows surpassing $2 billion. However, not all assets have benefited from the inflow trend—Litecoin and Toncoin recorded outflows, with Toncoin seeing the largest reversal at $1 million.

Market observers suggest that the current inflow pattern reflects a structural shift rather than a cyclical one, as corporate entities continue to accumulate Ethereum for treasury purposes and OTC desks report limited inventory. While short-term volatility remains a risk, particularly with the possibility of a market correction in September, the broader narrative points to sustained institutional interest in Ethereum. As one analyst put it, the “ETHSANITY” trend is gaining momentum, with inflows continuing to outpace Bitcoin and setting the stage for further appreciation in the asset’s price.

Source:

[1] Ethereum captures 77% of $3.75 billion inflows while ... (https://cryptoslate.com/ethereum-captures-77-of-3-75-billion-inflows-while-bitcoin-trails-behind/)

[2] Crypto Funds Post $3.75B Inflows Driven By Ether ETFs (https://cointelegraph.com/news/crypto-funds-inflows-3-75-billion-ether-etf-trading-volume-record)

[3] ETH charts predict $3.9K retest, then a 100% rally to new ... (https://cointelegraph.com/news/eth-charts-predict-dollar3-9k-retest-then-a-100percent-rally-to-new-highs)

[4] US spot Ether ETFs see 2nd-biggest inflows on record as ... (https://cointelegraph.com/news/ether-etfs-second-biggest-inflows-eth-new-high)

[5] Ether ETFs Absorb Record $1 Billion as Inflows Eclipse ... (https://thedefiant.io/news/markets/ether-etfs-absorb-record-1-billion-inflows-eclipse-bitcoin-funds-21a6b2cf)

[6] Bitcoin Sees $552M Inflows, But Ethereum's Haul Is 5 ... (https://cryptopotato.com/bitcoin-sees-552m-inflows-but-ethereums-haul-is-5-times-larger/)

[7] Ethereum ETF Inflows Outpace Bitcoin ETFs for Fifth Straight ... (https://finance.yahoo.com/news/ethereum-etf-inflows-outpace-bitcoin-175224466.html)