Ethereum ETFs Witness Consecutive Outflows as Bitcoin ETFs Experience Renewed Strength

Ethereum exchange-traded funds (ETFs), commonly known as Spot Ethereum ETFs, have reportedly observed two straight weeks of outflows. This development is the result of declining investor sentiment after months of experiencing robust inflows.

Spot Ethereum ETFs Face Redemptions

Latest data from SoSoValue suggests that Ether products, as a collective, recorded $243.9 million in net redemptions for the week that ended last Friday. This is in addition to the $311 million outflow that the Ether products experienced in the preceding week. Such events pulled down the cumulative inflows across all spot Ether ETFs to $14.35 billion. Meanwhile, the total net assets are currently standing firm at $26.39 billion, which approximately constitutes 5.55% of the market cap of Ethereum. These funds, on Friday, further faced $93.6 million in outflows.

Leading Outflows and Minor Inflows

Among the substantial outflows, BlackRock’s ETHA ETF set the tone with $100.99 million in outflows. In contrast, there were minor inflows reported by Grayscale’s ETHE and Bitwise’s ETHW. While Ethereum toys with outflows, contrastingly, spot Bitcoin ETFs recorded renewed strength over the same week. Reporting $446 million in net inflows, these Bitcoin ETFs indicated a return of institutional investors to the market, per information from SoSoValue.

Strength in Bitcoin ETFs

For Bitcoin ETFs, Friday was particularly strong as they accumulated another $90.6 million, leading to a cumulative inflow of $61.98 billion. The total net assets also elevated to reach $149.96 billion, representing 6.78% of Bitcoin’s market cap. BlackRock’s iShares Bitcoin Trust (IBIT) led the stream of inflows with $32.68 million, succeeded by Fidelity’s FBTC, which added $57.92 million. The two funds remain dominant, with IBIT managing $89.17 billion in assets and FBTC overseeing $22.84 billion.

Vincent Liu on Bitcoin’s Resilience

Vincent Liu, the chief investment officer at Kronos Research, has suggested that the ongoing ETF flows indicate a robust rotation into Bitcoin. According to Liu, investors are doubling down on the digital gold and store-of-value narrative, which shows renewed confidence in Bitcoin. This confidence follows the broader market sentiment favoring assets considered resilient amid worldwide uncertainty and expectations of future interest rate cuts.

Falling Interest in Ethereum

While Bitcoin attracts inflows, Ethereum’s ongoing outflows underscore a cooling demand and muted on-chain activity. Institutional investors are marking time, awaiting new triggers before they decide to re-enter.

Expectations for the Coming Week

Talking of the week ahead, Liu anticipates strong inflows of Bitcoin as traders align themselves for a potential macro tailwind from monetary easing. Ethereum and other altcoins may regain only if network activity picks up or new catalysts emerge, he added.