Ethereum ETFs Outshine Bitcoin

Ethereum exchange-traded funds (ETFs) have consistently outpaced their Bitcoin equivalents for six weeks, indicating a shift in investor preferences.

New data reveals that ETH products are attracting more stable inflows even while Bitcoin ETFs maintain a larger share of total assets under management.

Weekly Data Highlights Ethereum’s Advantage

As of August 27, cumulative inflows into U.S. spot Bitcoin ETFs amounted to $54.19 billion, with total assets under management of $144.57 billion, according to data from SoSoValue.

In comparison, Ethereum ETFs attracted $13.64 billion in total inflows and now manage $30.17 billion, which is about 5.44% of ETH’s market capitalization. While Bitcoin funds remain substantially larger, the pace at which Ethereum is accumulating assets is quite remarkable.

Analysis by DefiLlama, based on data from Farside Investors, demonstrates that spot ETH ETFs have seen stronger inflows than their Bitcoin counterparts for six consecutive weeks, even during times of market volatility.

The last instance Bitcoin ETFs surpassed Ethereum was in the week of July 14-20, during which BTC products recorded $2.386 billion in net inflows compared to Ethereum’s $2.182 billion. Since then, Bitcoin has experienced a decline.

From July 21 to 27, Bitcoin ETFs attracted only $72.3 million in inflows, while Ethereum ETFs gained $1.84 billion. The trend worsened from July 28 to August 3, when Bitcoin faced $642.9 million in outflows while ETH garnered $154.3 million.

Even amidst weeks when both asset classes faced declines, Ethereum still outperformed. For instance, from August 18 to 24, Bitcoin funds lost $1.179 billion, whereas only around $241 million exited from Ethereum ETFs.

In the final days of August, ETH continues to lead, bringing in over $1.2 billion in inflows, whereas their Bitcoin counterparts managed a mere $388.6 million since Monday.

Market Context

Examining the ETF landscape, BlackRock holds a commanding position in both asset classes. Its IBIT product leads in Bitcoin with $83.54 billion in net assets, following a single-day inflow of $50.87 million on August 27.

On the Ethereum side, BlackRock’s ETHA fund manages $17.19 billion and added $262.63 million on the same day, greatly surpassing contributions from rivals like Fidelity and Grayscale.

The broader markets reflect this trend, as Bitcoin and Ethereum are moving in opposite directions. Bitcoin is currently trading at $112,967, down 0.4% for the week, while ETH has risen 7.5% during the same timeframe.

BTC also lags in monthly performance, decreasing by 5%, while ETH has surged nearly 19%. Over the past year, ETH has risen by 86%, comparable to Bitcoin. Furthermore, both assets recently achieved new all-time highs but have subsequently pulled back from those peaks at similar rates.