Ethereum ETFs Surge Amidst Bitcoin Struggles
By: Eliza Bennet
In a notable shift within the cryptocurrency investment landscape, Ethereum exchange-traded funds (ETFs) in the United States have outpaced their Bitcoin counterparts in terms of inflows, marking a significant milestone in their anniversary week since the launch. The spot Ethereum ETFs have experienced an impressive surge, drawing over $1 billion in inflows over the past week, which coincides with the anniversary of their initial trading debut. This influx mirrors the growing institutional interest in Ethereum, a leading player within the cryptocurrency market alongside Bitcoin.
According to data from SoSoValue, spot Ethereum ETFs accumulated $332 million in net inflows on a single day, July 23. This was part of a three-day streak during which these products attracted more than $1 billion. Among the prominent players, BlackRock’s ETHA led the charge with $324.6 million in inflows, followed by VanEck's ETHV and Fidelity's FETH with respective inflows of $4 million and $3.6 million.
In contrast, Bitcoin ETFs faced challenges, struggling to maintain momentum as Ethereum ETFs rose. Despite 12 major spot Bitcoin ETFs in the market, only BlackRock's IBIT managed to record net inflows on July 23, pulling in $142.6 million. However, other Bitcoin ETFs, including Fidelity's FBTC, Ark Invest's ARKB, and Bitwise's BITB, collectively experienced over $238.9 million in outflows, resulting in a net outflow streak for Bitcoin ETFs amounting to over $84 million on that day alone. Cumulatively over the recent days, Bitcoin ETFs have seen an outflow of more than $280 million.
Since the inception of both Bitcoin and Ethereum ETFs, there has been an accumulation of over $60 billion in net inflows. Ethereum ETFs command a substantial portion of these assets, now managing over $16.6 billion as compared to their Bitcoin counterparts. This reinforced the growing popularity of Ethereum in the asset management sector, especially as traditional financial institutions begin to pay more attention to the crypto market due to these funds' performances. With the significant inflows and asset management, Ethereum and Bitcoin ETFs have undeniably influenced the narrative within the financial industry, potentially paving the way for future crypto investment products.
