For at least a week, Spot Ethereum Exchange traded more than its Bitcoin counterpart.
According to Farside Investor, UK assets manager, in its interest in the second-largest cryptocurrency mushroom, ETH, which tracks nine ETFs, generated net inflows of over $1.8 billion, continuing its 16-day positive streak.
The 12 Bitcoin funds added just $70 million in assets over the same period, showing net outflows of funds for three out of five days. Bitcoin has been at the top of the world historically, but this week, Ethereum dominated the flow of crypto ETFs.
“Many (investments) own Bitcoin ETFs and are increasingly interested in diversification,” said Ric Edelman, founder of the Digital Assets Council, an industry association. Decryption. “Ethereum is the second largest digital asset and the only other digital asset available in the (Spot) ETF format. It’s very easy to choose it in your own efforts to improve portfolio diversification.”
The spikes in Eth ETFS are intertwined with the growing popularity of these funds and the rise of Ethereum’s Treasury Department. These trends accelerated as the passage of the Genius Act Stablecoin Bill approached. The law signed into law last week by US President Donald Trump is expected to benefit Ethereum, the dominant platform for stablecoin trading.
Ethereum recently traded at around $3,745, an increase of over 50% over the past month, falling about 3% from its seven-month high set earlier this week.
“Ethereum has recently skyrocketed in prices after long-term unperformance compared to Bitcoin, and investors are well known after buying assets after increasing their value and selling.
BlackRock’s Ishares Ethereum Trust (ETHA) led the bill this week, adding an additional $1.29 billion investment. Eta on Wednesday became the third-fastest fund in the 32-year history of the ETF industry, reaching 251 days of $10 billion worth. According to TradingView, the Fidelity Ethereum Fund (Feth) has acquired more than $380 million in assets and has won $2.3 billion in AUM.
In an interview with DecryptionETF publisher Juan Leon, senior investment strategist at Bitwise Asset Management, said this week’s performance at Ethereum Funds is increasing its profits over the month compared to BTC ETFs.
“The influx of ETFs has significantly bridged the gap to Bitcoin,” Leon said. “If we look at the first week of July for two assets with a five-fold difference in market capitalization, there was only a 3.5-fold gap between the inflows, and the next week it narrowed even further.
Leon believes ETH funds will continue to have momentum at least in the short term, but investors hope to return to Bitcoin ETFs later in the year when major “wirehouse platforms” including Merrill Lynch and Wells Fargo begin to offer the latter as the previous trading options for “green light” ETFs.
“It would drive an updated flow to the Bitcoin ETF,” he said. “So I don’t know if the ETH ETF flow will be able to continue to outperform Bitcoin for the rest of the year. But for now, it appears that ETH continues to weigh over weeks and weeks, from the standpoint of at least a short-term inflection point, and one asset has something to do with the others.”