Why Ethereum ETFs Are Soaring While Bitcoin Sees Record Outflows

Spot Ethereum ETFs have recorded ten consecutive days of inflows with BlackRock's ETHA contributing the most while Bitcoin ETFs see outflows.
By Bhushan Akolkar
An image depicting the Ethereum ETFs

Highlights

  • The recent push for staking in Ethereum ETFs is boosting investor interest.
  • Since inception, BlackRock's ETHA's total inflows have exceeded $4.6 billion.
  • Spot Bitcoin ETFs have faced significant outflows over the past two trading sessions, totaling $616 million on Friday.

Spot Ethereum ETFs have recorded ten consecutive days of inflows, showing growing institutional demand for the asset, while Bitcoin ETFs have seen a surge in outflows over the past two trading sessions. This shift in institutional capital rotation could be due to the recent push to introduce staking to Ether ETFs. Furthermore, with 40% gains on the monthly chart, ETH has outperformed BTC in recent times.

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Ethereum ETF Inflows On the Rise

Over the past ten trading sessions, inflows into spot Ether ETFs have gathered pace, with BlackRock’s iShares Ethereum Trust (ETHA) dominating the flows. As per data from Farside Investors, ETHA inflows stood at $70.2 million on Friday, as per data from Farside Investors.

As a result, its total inflows since inception have crossed more than $4.6 billion, while taking the net flows across all US ETF issuers to more than $3 billion, since inception. Similar to Ethereum price gains, the ETHA share price has also surged by 44% over the past month, now trading at $19.49.

Earlier this month, BlackRock amended the S-1 filing for its Ethereum ETF ETHA to allow in-kind redemption. Soon after that, the inflows into ETHA have gathered momentum again. Furthermore, asset managers are pushing for the SEC to introduce staking to Ether ETFs soon. On Friday, asset manager RexShares filed a prospectus to bring staking to Ether ETF products in the United States. Asset manager BlackRock is also pushing for the same.

Although inflows into spot Ethereum ETF have been on the rise, it won’t have much impact on spot ETH price, according to the latest study from Glassnode. This is because the contribution of ETFs to the daily trading volumes of spot Ether is negligible at 1.5% or below.

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Bitcoin ETFs See Outflows Soaring

Spot Bitcoin ETFs outflows have been on the rise in the last two consecutive trading sessions. On Friday, total outflows on Bitcoin ETFs stood at $616 million, with BlackRock’s IBIT alone contributing to $430 million. Apart from this, Ark Invests’ ARKB saw more than $120 million of outflows.

However, these recent outflows came after a month of massive inflows, crossing $44 billion. This is also completed with the Bitcoin price rally to $111K, however, the recent pullback shows a shift in investor sentiment.

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Bhushan Akolkar
Bhushan is a seasoned crypto writer with over eight years of experience spanning more than 10,000 contributions across multiple platforms like CoinGape, CoinSpeaker, Bitcoinist, Crypto News Flash, and others. Being a Fintech enthusiast, he loves reporting across Crypto, Blockchain, DeFi, Global Macros with a keen understanding in financial markets. 

He is committed to continuous learning and stays motivated by sharing the knowledge he acquires. In his free time, Bhushan enjoys reading thriller fiction novels and occasionally explores his culinary skills. Bhushan has a bachelors degree in electronics engineering, however, his interest in finance and economics drives him to crypto and blockchain.
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