Ethereum Overtakes Bitcoin in Rapid Crypto Fund Growth

By: Eva Baxter

The cryptocurrency market is witnessing an unprecedented wave of investment inflows with Ethereum emerging as a significant driver of this trend. According to the latest report from CoinShares, crypto investment products received $1.04 billion in new capital last week, contributing to a total year-to-date inflow of $18 billion. This represents the 12th consecutive week of positive net inflows, underscoring sustained investor enthusiasm for digital assets.

Despite Bitcoin's continued dominance as the preferred choice among institutional investors, recording $790 million in inflows last week, Ethereum's growth trajectory is becoming increasingly notable. Ether attracted $226 million during the same period, marking its 11th consecutive week of inflows, which now total over $3 billion for the year. This represents an average inflow rate that is double that of Bitcoin, highlighting growing confidence in Ethereum's long-term potential.

Opinion is corroborating by Matt Hougan, Chief Investment Officer at Bitwise, who forecasts significant future inflows into Ethereum spot funds within the United States, potentially reaching up to $10 billion by late 2025. The attractiveness of Ethereum to investors stems from its practical applications in tokenizing real-world assets, providing a solid foundation for its growth.

Moreover, there is a general diffusion of investment interest beyond Bitcoin and Ethereum to include altcoins. Products linked to Solana, XRP, and Sui collectively attracted over $33.8 million in new investments last week. While regional interest remains strong in the U.S., with $1 billion in inflows, Canada and Brazil experienced outflows, reflecting varied investor sentiment across different markets.