For a whole week, Ethereum spot ETFs have drawn in more capital than Bitcoin ETFs, signaling a distinct change in investor funding strategies.
Summary
- Ethereum ETFs attracted $1.83 billion from August 21 to 27, greatly outpacing Bitcoin ETFs, which garnered $171 million during the same timeframe.
- In the past month, Ethereum ETFs have witnessed approximately $3.7 billion in net inflows, while Bitcoin ETFs experienced net outflows totaling about $803.4 million.
- The recent influx into ETFs correlates with Ethereum’s price surge, as ETH rose to nearly $4,950 before stabilizing around $4,600, reflecting a 19% increase for the month.
Ethereum (ETH) ETFs recorded $1.83 billion in inflows from August 21 to 27, whereas Bitcoin ETFs only attracted $171 million during the same duration. According to data from SoSoValue, ETFs tracking ETH secured $307.2 million during their latest trading session, while Bitcoin (BTC) ETFs noted $81.3 million in net inflows.
This trend marks a continuation of favorable flows over the week, with Ethereum ETFs on a four-day winning streak while Bitcoin ETFs lag behind.
Throughout August, Ethereum ETFs attracted around $3.7 billion in net inflows. Conversely, Bitcoin ETFs recorded net outflows of approximately $803.4 million, largely influenced by the $1.17 billion withdrawal in the week ending August 22.
Notably, the scale of inflows is particularly remarkable given Ethereum’s smaller market cap compared to Bitcoin. Ethereum ETFs have drawn over ten times more capital in the last five trading days.
This ongoing trend sharply contrasts with earlier performance this year, when Bitcoin ETFs excelled in weekly and monthly gains. The shift indicates a growing investor preference for ETH, with many now identifying it as having greater growth potential in the present cycle as institutional interest intensifies.
Ethereum ETF growth driven by price increase
The significant inflows into Ethereum ETFs have coincided with a consistent rise in price. Over the past month, ETH has seen substantial gains, even recently hitting a new all-time high near $4,950.
While it has recalibrated to trade at $4,600 as of this writing, the asset remains approximately 7.3% up weekly and 19% for the month, bolstering bullish sentiment.
Bitcoin, on the other hand, is trading just above $113,000. The leading cryptocurrency dipped to around $109,000 earlier this week and currently shows a monthly decline of about 5%. While it demonstrates no significant weakness, the lack of sustained momentum has allowed Ethereum to excel in terms of price performance and institutional fund inflows.
A comparable trend is visible in corporate accumulation. Recently, demand for ETH among corporate entities has exceeded that for Bitcoin, with many aggressively acquiring ETH while institutional Bitcoin purchases slow down.
Moreover, Ethereum ETF assets under management have also outperformed Bitcoin in recent months. In the last 30 days, ETH ETFs have seen a nearly 58% increase, while Bitcoin ETFs have declined by about 10.7%.
Forthcoming U.S. macroeconomic data could impact the direction of these flows. If market conditions remain uncertain, ETFs may become increasingly attractive as a regulated and accessible means to gain exposure to crypto. Currently, Ethereum holds the advantage not just in price action but also in narrative. The key question remains whether it can maintain that momentum as the ETF market develops.
