Despite Fed Caution, Ethereum ETFs Outpace Bitcoin in Inflows

Ethereum and Bitcoin spot ETFs recorded combined inflows of $376 million on September 18, 2025, as institutional demand for crypto assets continued to strengthen despite mixed macroeconomic signals. Ethereum ETFs led the flow with $213.07 million, surpassing Bitcoin’s $163.03 million, according to SoSoValue dataEthereum ETFs Outshine Bitcoin ETF With $213M Inflows as Market Rebounds^[1]. This marked a reversal from the previous two days of outflows for Ethereum ETFs and highlighted growing confidence in the second-largest cryptocurrency. Bitcoin, meanwhile, edged higher by 0.3% in the 24 hours preceding the inflows, while Ethereum gained 1.7%, with the broader CoinDesk 20 (CD20) index rising 2%.

The inflows followed a Federal Reserve rate cut of 25 basis points, which brought the benchmark rate to 4.00%-4.25%. However, the central bank’s signal of fewer rate cuts than expected in 2025 and 2026 introduced market caution, triggering a pullback in risk assets. Despite this, Bitcoin ETFs maintained a net inflow of $163.03 million, with Fidelity’s FBTC dominating with $97.35 million. Grayscale’s GBTC, which had previously faced heavy redemptions, saw $10.93 million in inflowsEthereum ETFs Outshine Bitcoin ETF With $213M Inflows as Market Rebounds^[1]. For Ethereum, Fidelity’s FETH accounted for $159.38 million of the total inflow, while Grayscale’s ETH gained $22.90 millionEthereum ETFs Outshine Bitcoin ETF With $213M Inflows as Market Rebounds^[1].

The surge in ETF activity reflects broader institutional adoption, with total assets under management for Bitcoin ETFs reaching $155.05 billion—6.62% of the cryptocurrency’s market cap. Ethereum ETFs, meanwhile, now hold $30.54 billion in net assets, or 5.49% of Ethereum’s market capEthereum ETFs Outshine Bitcoin ETF With $213M Inflows as Market Rebounds^[1]. These figures underscore a shift in capital allocation, with Ethereum ETFs capturing a larger share of inflows compared to Bitcoin in recent weeks. Analysts attribute this trend to Ethereum’s ecosystem upgrades and its role as a foundational asset in decentralized finance (DeFi) and smart contract applications.

Market context reinforced the inflows’ significance. Bitcoin traded at $116,879, with a market cap of $2.328 trillion, while Ethereum reached $4,537.16 and a $547.654 billion market capEthereum ETFs Outshine Bitcoin ETF With $213M Inflows as Market Rebounds^[1]. Despite a 0.4% drop in Bitcoin’s price from the previous day, the asset’s seven-day gain of 4.38% highlighted resilience in the face of macroeconomic uncertainty. Ethereum’s 8.34% seven-day gain further signaled robust demand, particularly from institutional investors seeking exposure to the asset’s long-term growth potentialEthereum ETFs Outshine Bitcoin ETF With $213M Inflows as Market Rebounds^[1].

The ETF inflows also occurred against a backdrop of evolving regulatory developments. The U.S. Securities and Exchange Commission (SEC) recently approved new listing standards for commodity-based ETFs, clearing the way for spot ETFs tied to a wider range of cryptocurrenciesSEC Approves New Listing Standards, Paving Way for More Crypto Spot ETFs^[4]. This move, coupled with the launch of XRP and Dogecoin ETFs via the 40 Act structure, signaled a maturing market infrastructure. Grayscale’s Digital Large Cap Fund, the first multi-asset crypto ETP in the U.S., further diversified institutional access to digital assetsSEC Approves New Listing Standards, Paving Way for More Crypto Spot ETFs^[4].

While Bitcoin ETFs have historically dominated inflows, Ethereum’s recent performance suggests a repositioning of capital within the crypto space. The ETH/BTC ratio, a key metric for relative strength, has risen over 70% since May 2025, indicating a shift in investor preferencesEthereum ETFs Inflows Hit $2.9B as ETH Outshines Bitcoin^[5]. This trend aligns with Ethereum’s technical momentum, with the asset strengthening above $4,600 and showing potential for a move toward $5,000. For Bitcoin, analysts noted a potential breakout above $120,000 could trigger a rally toward $150,000 by early 2026Bitcoin Spot ETF Records $51M Outflow Snaps 7-Day Inflow …^[3].

The combined $376 million inflow underscores the growing role of ETFs in legitimizing cryptocurrencies as institutional-grade assets. As the market navigates macroeconomic volatility and regulatory clarity, Ethereum and Bitcoin ETFs are likely to remain focal points for capital flows, reflecting both speculative and long-term investment strategies.