Ethereum exchange-traded funds (ETFs) have significantly outperformed their Bitcoin counterparts in attracting new investor capital, securing over $1.8 billion in net inflows over the past week. This marks a continuation of positive inflows for Ethereum investment products for 16 consecutive days.
In stark contrast, Bitcoin ETFs registered a mere $70 million in net inflows during the same period, with several individual days even experiencing net outflows. The significant disparity highlights a shifting investor focus towards Ethereum-based products.
Key factors driving the strong demand for Ethereum ETFs include the proposed GENIUS Act stablecoin legislation increasing regulatory confidence in the asset class, coupled with a substantial price surge that saw Ethereum’s value climb to approximately $3,745, enhancing its appeal to institutional investors.
BlackRock’s iShares Ethereum Trust (ETHA) emerged as a clear leader within the space, attracting $1.29 billion of the total weekly inflows. This robust influx propelled the ETHA’s assets under management (AUM) to $10 billion, achieved in just 251 days since its launch. Fidelity’s Ethereum Fund (FETH) also performed strongly, securing over $380 million in net inflows and reaching $2.3 billion in AUM.
This sustained momentum has dramatically narrowed the inflow gap between Bitcoin and Ethereum ETFs. The ratio has shifted from a 3.5x advantage for Bitcoin products in early July to near parity in recent activity.
Analysts note that while Ethereum ETFs currently dominate inflow activity, the ongoing institutional adoption cycle, including major banks beginning to offer Bitcoin ETFs to clients, may catalyze a resurgence in demand for Bitcoin ETFs. Such a shift could subsequently restore a more balanced flow dynamic between the two major cryptocurrency investment vehicles.