Ethereum ETFs Experience Extended Outflows Amid Decreased Investor Interest
Ethereum ETFs have seen consistent outflows for two weeks, reflecting waning demand as Bitcoin ETFs gain traction with significant inflows.
Spot Ethereum exchange-traded funds (ETFs) have recorded two consecutive weeks of outflows due to fading investor enthusiasm after a period of strong inflows.
According to data from SoSoValue, Ether (ETH) products faced $243.9 million in net withdrawals for the week ending on Friday, following the previous week’s outflow of $311 million.
Overall, Ether spot ETFs have seen cumulative inflows of $14.35 billion, with total net assets reaching $26.39 billion, about 5.55% of Ethereum’s market capitalization.
Moreover, last Friday alone accounted for $93.6 million in outflows, with BlackRock’s ETHA ETF leading the withdrawals at $100.99 million. In contrast, Grayscale’s ETHE and Bitwise’s ETHW experienced minor inflows.
Ether funds see outflows for second week. Source: SoSoValue
Related: Bitcoin ETF apathy is pressuring a key Bitcoin support level
Spot Bitcoin ETFs Experience New Strength
Meanwhile, spot Bitcoin (BTC) ETFs have shown remarkable resilience this week, witnessing $446 million in net inflows as institutional investors re-enter the market, as per SoSoValue data. On Friday, these products added another $90.6 million, bringing total inflows to $61.98 billion and net assets to $149.96 billion, representing 6.78% of Bitcoin’s market cap.
BlackRock’s iShares Bitcoin Trust (IBIT) spearheaded the inflows with $32.68 million, with Fidelity’s FBTC following at $57.92 million. Both remain dominant players, with IBIT holding $89.17 billion in assets compared to FBTC’s $22.84 billion.
Bitcoin funds see inflows. Source: SoSoValue
Related: Bitcoin ETFs Add $2.7B in ‘Uptober’ Despite Tariff Fears
Bitcoin ETF Inflows Surge as Ether Demand Waning
Vincent Liu, Chief Investment Officer of Kronos Research, remarked that current ETF flows indicate a “strong” shift toward Bitcoin, as investors reinforce their views on Bitcoin as “digital gold” and a store of value. He noted that the renewed confidence in Bitcoin mirrors broader market sentiment that favors assets perceived as robust amid global uncertainties and expectations of upcoming interest rate reductions.
In contrast, Ethereum’s persistent ETF outflows reflect diminished demand and slower on-chain activity, leading institutional investors to hold back for new incentives before re-entering the market.
Looking forward, Liu anticipates robust BTC inflows remaining steady as traders brace for a possible tailwind from monetary easing. He added, “Ethereum and other altcoins may only rebound if network activity picks up or fresh catalysts appear.”
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