Key Points:
- ETH ETFs recorded $2.4 billion in inflows over six days, more than the Bitcoin ETFs.
- BlackRock’s ETHA led the charge, contributing nearly 75%.
- Institutional interest in Ethereum is heating up, with ETH ETFs gaining momentum.
The race between Ethereum and Bitcoin has taken a new turn, and this time it’s happening in the ETF market. Spot ETH ETF inflows have beaten their Bitcoin counterparts in net inflows for six consecutive trading days.
Institutional investors are increasingly shifting their focus toward Ethereum. This change in inflows reflects a growing belief in ETH as a major crypto asset.
ETH ETF Inflows Lead for Six Straight Days
Over the past six trading sessions, ETH ETF inflows attracted nearly $2.4 billion in net inflows. These inflows so far have dwarfed the $827 million pulled in by Bitcoin ETFs during the same period.
According to data from Farside Investors, ETH ETF inflows have consistently led the market daily over this stretch.
For example, BlackRock’s iShares Ethereum ETF (ETHA) was the biggest driver of this growth. It recorded $1.79 Billion in inflows, representing almost 75% of the total ETH ETF inflows.
ETHA’s momentum has also pushed it into the spotlight. It has become the third-fastest ETF to reach $10 billion in assets under management. Moreover, it achieved this milestone in just 251 trading days.
Institutional Appetite for Ethereum Is Growing
While ETH ETFs are gaining ground, they’re also riding on a more general trend of institutional interest in Ethereum. BitMine Immersion Technologies made headlines recently after purchasing $2 billion worth of ETH in just 16 days.
This single move made them the largest corporate holder of Ethereum. Other firms like SharpLink Gaming have also made massive ETH acquisitions.
Also, it added to the ongoing narrative of an ETH supply crunch. Institutional holdings in Ethereum now stand at around 2.31 million ETH. It is nearly 1.91% of the coin’s circulating supply.
This kind of demand is expected to have a real effect on the price of Ethereum over the coming months.
ETH ETF Players Experiencing Major Gains
Other major ETH ETF players are also seeing record-breaking growth. Fidelity’s Ethereum Fund (FETH) posted its best single-day inflow last Thursday with $210 million.
This beat its previous high of $202 million recorded in December last year. Grayscale’s ETHE fund has also seen steady growth. ETH ETF assets have surged past $20.7 billion. That now makes up approximately 4.6% of Ethereum’s total market value.
ETH ETF inflows haven’t just been strong recently but also consistent. Ethereum ETFs have now seen net inflows for 15 straight trading days, showing strong interest despite the market’s volatility.
Bitcoin ETFs Struggle to Keep Up
While Ethereum is on a roll, Bitcoin ETFs are facing mixed results. Spot BTC ETFs recently broke their 12-day inflow streak with a $131 million net outflow. Before that, Bitcoin ETFs had enjoyed a $6.6 billion run over the previous 12 days.
Still, there are signs of recovery. On July 24, Bitcoin ETFs rebounded with $226.61 million in net inflows. Fidelity’s FBTC and BlackRock’s IBIT led this comeback, pulling in $106.58 million and $32.49 million, respectively.
At the time of writing, BTC ETFs now manage over $154.45 billion in net assets cumulatively. It is about 6.54% of the total Bitcoin supply.
ETH ETFs May Lead the Next Market Cycle
Industry leaders are also taking note. Galaxy Digital CEO Michael Novogratz recently predicted that Ethereum could hit $4,000 soon. It could also outperform Bitcoin in the next six months.
He pointed to major corporate ETH purchases as pointers that could create a “supply shock,” and further drive up prices.
Research firms like Swissblock also agree with this outlook. Their recent outlook shows that Ethereum is “rotating into leadership.” It is expected to drive the next leg of the market cycle.
This is amid an ongoing market-wide correction that has seen Bitcoin crash by around 3% over the last day to $115,000. On the other hand, Ethereum is up by nearly 3% at $3,700.