Ethereum News Today: Investors Shift Loyalty: Ethereum ETFs Outpace Bitcoin by 10x

Investor appetite for digital assets surged in the week ending August 30, with crypto exchange-traded products (ETPs) attracting a total of $2.48 billion in net inflows, according to data from CoinShares [1]. This marked a notable shift in momentum, following $1.4 billion in outflows the previous week, though the total inflow figure still fell short of the $4.4 billion record set in July.

The inflows were largely driven by spot Ethereum ETFs, which attracted $1.4 billion in the period, more than double the $748 million seen in Bitcoin ETFs [1]. Despite the inflows, both Bitcoin and Ethereum faced price declines, with BTC dipping below $108,000 and ETH sliding beneath $4,300, according to CoinGecko data [1]. The disparity in fund flows highlights a growing preference among investors for Ethereum, which saw inflows outpace Bitcoin by nearly 10 times in the five trading days leading up to August 30, according to another report [2].

BlackRock’s Ethereum ETF (ETHA) was among the top performers, recording $265.74 million in net inflows on August 27 alone [2]. Over the past five days, ETHA attracted $310.3 million in inflows, pushing its cumulative total to $1.2 billion. The ETF’s success is indicative of broader investor confidence, with investment advisers now accounting for the largest share of inflows into Ether ETFs, according to Bloomberg analyst James Seyffart [2]. Advisers invested more than $1.3 billion, or 539,000 ETH, in the second quarter of 2024, reflecting a 68% increase from the previous quarter.

Ethereum’s performance has also outpaced Bitcoin on the price front, with ETH climbing 5% from its recent low, compared to a 2.8% gain for BTC over the same period [2]. Analysts attribute this trend to Ethereum’s structural advantages and the broader adoption of crypto assets as a long-term diversification tool in traditional investment portfolios. Vincent Liu, Chief Investment Officer at Kronos Research, noted that as more advisers integrate Bitcoin and Ether ETFs, digital assets are increasingly being viewed as core components of diversified strategies alongside equities and bonds [2].

The inflow momentum has also extended to smaller-cap altcoins such as Solana (SOL) and XRP (XRP), both of which saw positive flows amid speculation around potential US ETF launches. SOL attracted $177 million in inflows, while XRP gained $134 million, according to CoinShares [1]. This broad-based activity suggests a continued shift in investor sentiment toward the broader crypto market, despite macroeconomic uncertainties and price volatility.

Source:

[1] Cryptocurrency ETP Inflows Reach $2.48 Billion Amid BTC and ETH Price Slump (https://cointelegraph.com/news/crypto-etp-inflows-2-48b-bitcoin-ether-etf-dominance)

[2] Ethereum ETFs Outperform Bitcoin ETFs by Nearly 10x in Inflows (https://finance.yahoo.com/news/ethereum-etf-inflows-overtake-bitcoin-110746206.html)