Bitcoin BTC/USD ETFs have amassed a whopping $18.08 billion in cumulative net inflows as of Aug. 26, while Ethereum ETH/USD ETFs have seen net outflows of $477.88 million since their inception.
What Happened: This contrast in fund flows highlights a clear preference among institutional investors, with Bitcoin ETFs commanding $58.47 billion in total net assets compared to Ethereum’s $7.46 billion.
The latest data reveals that on Aug. 26 alone, Bitcoin ETFs saw a daily inflow of $224.06 million, predominantly driven by BlackRock’s IBIT fund, according to data from SoSo Value.
In sharp contrast, Ethereum ETFs experienced a net outflow of $13.23 million on the same day, with Grayscale‘s ETHE fund leading the exodus at $9.52 million, data shows.
Providing context to the figures Matteo Greco, Research Analyst at Fineqia International said spot Bitcoin ETFs have now recorded eight consecutive trading days of positive inflows, and for the first time, surpassed $18 billion in net inflows since their inception, setting a new all-time high while ETH spot ETFs have seen eight consecutive trading days of net outflows, indicating a contrasting sentiment in recent weeks.
The disparities extend beyond mere fund flows.
Trading volumes tell a similar tale of two markets.
Bitcoin ETFs traded approximately $7.6 billion over the past week, with BlackRock’s IBIT leading the pack at $704.81 million on Aug. 26 alone.
Ethereum ETFs, in comparison, saw a total trading volume of $125.73 million on the same day, with Grayscale’s ETHE accounting for $38.90 million.
Why It Matters: The stark difference in ETF performance between the two leading cryptocurrencies raises questions about investor preferences and market maturity.
“The conversation around including altcoins in ETFs in the U.S. only started less than a year ago, after BTC spot ETFs started trading. ETH spot ETFs received rapid approval, whereas BTC spot ETFs had been under discussion for years before gaining the green light,” Greco said.
This historical context partially explains the current landscape.
Bitcoin ETFs benefit from years of pent-up demand and a more established investor base.
Ethereum ETFs, while approved more quickly, are still in the process of building their investor base and demonstrating their value proposition to traditional finance.
Looking at the first 25 trading days of both ETF types, the contrast becomes even more apparent.
Bitcoin ETFs have seen 19 days of net inflows and only 6 days of outflows.
Ethereum ETFs, on the other hand, have experienced a mere 8 days of net inflows versus 17 days of outflows.
What’s Next: These topics are expected to be thoroughly explored at Benzinga’s upcoming Future of Digital Assets event on Nov. 19.
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