Ethereum News Today: Investors Shift $1.8B to Ethereum ETFs, Leaving Bitcoin in Dust

Spot Ethereum ETFs have surged ahead of their Bitcoin counterparts in recent inflows, drawing $1.83 billion in net inflows over the past five trading days, compared to just $171 million for Bitcoin ETFs. This data, sourced from CoinGlass, underscores a growing institutional and retail interest in Ethereum. Over the same period, Ethereum ETFs have continued to attract significant capital, with nine funds collectively receiving $310.3 million in inflows on the latest trading day, while Bitcoin ETFs saw only $81.1 million in net inflows [4].

The trend is part of a broader pattern in which Ethereum ETFs have consistently outpaced Bitcoin ETFs. Since the launch of spot Ethereum ETFs 13 months ago, they have accumulated $13.6 billion in total inflows, with a substantial portion of that capital flowing in over the past few months. In contrast, Bitcoin ETFs, which have been trading for 20 months, have attracted $54 billion in total inflows [4]. The recent shift has been particularly pronounced, with Ethereum ETFs capturing more than 10 times the inflows of Bitcoin ETFs in the last five days alone [4].

Industry experts and analysts have taken notice of this trend. Anthony Sassano, an Ethereum educator and investor, described the inflow disparity as “brutal,” highlighting Ethereum's growing appeal in the crypto market. Similarly, Nate Geraci, president of NovaDius Wealth Management, noted that spot Ethereum ETFs are nearing $10 billion in total inflows since the start of July [4]. The momentum is attributed to several factors, including Ethereum’s yield-generating capabilities, regulatory clarity, and its expanding role in corporate treasury strategies [1].

Ethereum’s price performance has also been more resilient compared to Bitcoin during this period. ETH prices have climbed 5% from their Tuesday low, while Bitcoin has only managed a 2.8% gain over the same period [4]. This divergence in performance aligns with the observed inflow patterns and suggests a growing institutional preference for Ethereum over Bitcoin. The recent passage of the GENIUS Act stablecoin legislation in July has further amplified Ethereum’s appeal, given its dominant position in the stablecoin and tokenized real-world asset markets [4].

The growing inflows into Ethereum ETFs have not gone unnoticed by major financial institutions. VanEck CEO Jan van Eck has referred to Ethereum as the “Wall Street token,” reflecting its increasing significance in institutional investment strategies [4]. Bloomberg ETF analyst James Seyffart reported that investment advisers are the top holders of Ethereum ETFs, with $1.3 billion in exposure. Goldman Sachs is the largest holder among them, with $712 million in Ethereum ETF exposure [4].

Despite the recent outperformance, Bitcoin ETFs are still a significant component of the crypto investment landscape. However, the current inflow trends suggest a potential shift in investor preferences, favoring Ethereum’s more dynamic and innovative ecosystem. Analysts caution that while the momentum may continue, the long-term success of these ETFs will depend on sustained capital inflows and broader market adoption [2].

Source: [1] Spot Ethereum ETFs log $455 million in daily inflows ... (https://www.theblock.co/post/368409/spot-ethereum-etfs-455-million-inflows) [2] Bitcoin ETFs Need Almost $1B Inflows to Sidestep Second ... (https://finance.yahoo.com/news/bitcoin-etfs-almost-1b-inflows-113814157.html) [4] Ether ETFs capture 10x more inflows than Bitcoin in 5 days (https://cointelegraph.com/news/ether-etfs-captured-10x-more-inflows-than-bitcoin-in-last-5-days)