tl;dr
Ethereum ETFs are making waves in the crypto market, outpacing Bitcoin ETFs for the sixth week in a row. This shift in investor sentiment is a clear sign that Ethereum is gaining traction among a growing number of investors who are looking for opportunities beyond the well-established Bitcoin.
Acco...
Ethereum ETFs are making waves in the crypto market, outpacing Bitcoin ETFs for the sixth week in a row. This shift in investor sentiment is a clear sign that Ethereum is gaining traction among a growing number of investors who are looking for opportunities beyond the well-established Bitcoin.
According to the latest data from SoSoValue, as of August 27, the U.S. spot Bitcoin ETFs have attracted a total of $54.19 billion in inflows, with $144.57 billion in assets under management. In comparison, Ethereum ETFs have seen $13.64 billion in inflows, managing $30.17 billion in assets, which represents 5.44% of Ethereum’s market capitalization. While Bitcoin ETFs still hold the majority of the assets, Ethereum is showing a much stronger rate of growth.
DefiLlama’s analysis, based on data from Farside Investors, reveals that Ethereum ETFs have consistently outperformed Bitcoin ETFs in terms of inflows over the past six weeks. This trend has been particularly notable during periods of market volatility, indicating that Ethereum is becoming a preferred choice for many investors.
Looking back, the last time Bitcoin ETFs outperformed Ethereum ETFs was during the week of July 14-20. At that time, Bitcoin ETFs saw $2.386 billion in net inflows, compared to Ethereum’s $2.182 billion. Since then, Ethereum has steadily gained ground, with Bitcoin ETFs seeing only $72.3 million in inflows between July 21 and 27, while Ethereum ETFs attracted $1.84 billion.
The trend continued into the following weeks, with Bitcoin ETFs experiencing outflows of $642.9 million from July 28 to August 3, while Ethereum ETFs recorded net gains of $154.3 million. Even in weeks where both asset classes saw losses, Ethereum ETFs fared better. Between August 18 and 24, Bitcoin ETFs lost $1.179 billion, while Ethereum ETFs only lost $241 million.
As of the latest data, Ethereum ETFs are once again leading the charge, with over $1.2 billion in inflows for the week ending August 27. In contrast, Bitcoin ETFs managed a more modest $388.6 million in inflows during the same period.
In the ETF ecosystem, BlackRock is a dominant player in both the Bitcoin and Ethereum markets. Its IBIT product leads the Bitcoin ETFs with $83.54 billion in net assets, following a $50.87 million single-day inflow on August 27. On the Ethereum side, BlackRock’s ETHA fund has $17.19 billion in assets and added $262.63 million in inflows on the same day, significantly outpacing its competitors like Fidelity and Grayscale.
In the broader market, Bitcoin and Ethereum have been moving in opposite directions. Bitcoin is currently trading at $112,967, down slightly by 0.4% on the week, while Ethereum has seen a 7.5% increase. Over the past month, Bitcoin has dipped by 5%, while Ethereum has climbed by nearly 19%. Year-to-date, Ethereum has advanced by 86%, which is in line with Bitcoin’s performance.
Both Bitcoin and Ethereum have recently hit new all-time highs, but they have since dropped from their peaks by almost the same rate. This suggests that while Ethereum is showing stronger growth in the ETF space, Bitcoin still holds a significant position in the market.
As the crypto landscape continues to evolve, the growing interest in Ethereum ETFs highlights a shift in investor preferences. With Ethereum showing a stronger pace of accumulation and outperforming Bitcoin ETFs, it’s clear that the market is looking for new opportunities beyond the traditional favorites.