Spot Ethereum exchange-traded funds (ETFs) have recorded outflows for the second week in a row, signaling a shift in investor sentiment following months of robust inflows. Data from SoSoValue reveals that Ethereum (ETH) ETFs collectively saw net redemptions totaling $243.9 million during the week ending Friday, following a $311 million outflow the previous week.
This trend has brought the cumulative inflows across all Ether spot ETFs to $14.35 billion, while total net assets under management remain at $26.39 billion. These assets account for approximately 5.55% of Ethereum’s overall market capitalization. On the final day of the week, ETH funds faced an additional $93.6 million in outflows.
Among the Ethereum ETFs, BlackRock’s ETHA fund experienced the largest withdrawals, losing $100.99 million. In contrast, Grayscale’s ETHE and Bitwise’s ETHW saw modest inflows despite the general downturn.
Bitcoin ETFs Experience a Rebound
In contrast to Ethereum’s recent challenges, spot Bitcoin (BTC) ETFs enjoyed a resurgence this week, attracting $446 million in net inflows as institutional investors reengaged with the market, according to SoSoValue. On Friday alone, Bitcoin products added $90.6 million, bringing total inflows since inception to an impressive $61.98 billion. The combined net assets under management for Bitcoin ETFs stand at $149.96 billion, equating to roughly 6.78% of Bitcoin’s market cap.
Leading this inflow was BlackRock’s iShares Bitcoin Trust (IBIT), which added $32.68 million. Fidelity’s FBTC also contributed significantly with $57.92 million in inflows. These two ETFs hold commanding positions in terms of assets under management, with IBIT managing $89.17 billion and FBTC overseeing $22.84 billion.
Market Insights
Vincent Liu, Chief Investment Officer at Kronos Research, commented that the contrasting ETF flows highlight a “strong” rotation back into Bitcoin. He noted that renewed investor confidence in Bitcoin is aligned with its status as “digital gold” and a store of value amid ongoing global uncertainties and widespread expectations of upcoming interest rate reductions.
Meanwhile, the persistent outflows from Ethereum ETFs point to damping demand and reduced on-chain activity. Institutional investors appear to be adopting a wait-and-see approach, anticipating fresh catalysts before resuming meaningful exposure to Ethereum products.
Looking forward, Liu expects Bitcoin ETF inflows to maintain momentum as market participants prepare for potential macroeconomic support stemming from monetary easing measures. However, he indicated that Ethereum and other alternative cryptocurrencies might only experience a revival if network activity intensifies or new fundamental drivers emerge.
