Ethereum ETFs Note Steady Withdrawal Trends
Ethereum (ETH) exchange-traded funds (ETFs) have recently faced withdrawals for two consecutive weeks, linked to a diminishing enthusiasm among investors following an extended period of strong interest.
According to data from SoSoValue, ETH products recorded a net withdrawal of $243.9 million for the week concluded on Friday, following the preceding week’s withdrawal of $311 million. This indicates a cooling trend in demand, bringing the total inflows for Ethereum spot ETFs to $14.35 billion, with net assets equating to $26.39 billion, which is approximately 5.55% of Ethereum’s overall market cap.
On that same Friday, outflows totaled $93.6 million; notably, BlackRock’s ETHA ETF accounted for $100.99 million of the withdrawals. Meanwhile, Grayscale’s ETHE and Bitwise’s ETHW recorded modest inflows.
Ether funds see outflows for second week. Source: SoSoValue
Bitcoin ETFs Gain Traction
Conversely, Bitcoin (BTC) ETFs experienced a resurgence, with a notable conversion of $446 million in inflows as institutional investors re-entered the market. This suggests growing confidence in Bitcoin as a narrative of digital gold continues to gain traction. On Friday alone, these funds saw an additional $90.6 million, providing a cumulative total of $61.98 billion in inflows and net assets valued at $149.96 billion, constituting 6.78% of Bitcoin’s overall market.
Leading the inflows was BlackRock’s iShares Bitcoin Trust (IBIT), which rose by $32.68 million, closely trailed by Fidelity’s FBTC, which gained $57.92 million.
Bitcoin funds see inflows. Source: SoSoValue
Future Outlook
Vincent Liu, Chief Investment Officer at Kronos Research, shared insights indicating that the current trends show a substantial shift towards Bitcoin, as investors increasingly appreciate its resilience amid global financial uncertainties and expect forthcoming interest rate cuts.
Liu articulated that Ethereum’s ongoing outflows reflect decreased demand and less on-chain activity, with institutional players waiting for compelling events before they reinvest. He anticipates strong BTC inflows as market participants gear up for potential economic catalysts, while Ethereum and alternative cryptocurrencies may recover solely if network activity revives or new driving forces arise.
