Bitcoin Spot ETFs Continue to Attract Massive Flows, While Ethereum Struggles
Exchange-traded funds (ETFs) linked to cryptocurrencies continue to show contrasting dynamics in the US market. While Bitcoin Spot ETFs are attracting massive inflows, their Ethereum counterparts are struggling to attract investors.
A Boom for Bitcoin Spot ETFs
The market for Bitcoin Spot ETFs recently experienced one of its strongest increases in inflows since late September. The 27th of September already marked an important moment for BTC ETFs, but the latest increase in inflows surpasses even this recent record. Yesterday, net flows reached $235.2 million, marking another impressive day for these financial products.
Among the major beneficiaries of this influx, Fidelity’s FBTC fund stood out by accumulating $103.7 million, while BlackRock’s IBIT fund attracted $97.9 million. This performance underlines investors’ confidence in Bitcoin-based ETFs, which have accumulated nearly $18.75 billion since their introduction in January of this year.
Ethereum Spot ETFs in Difficult Position
On the other hand, the market for ETH ETFs seems to be in a much more precarious position. For the second time since their launch in July, Ethereum-based ETFs have recorded very low flows. The first time a true phenomenon of zero flows occurred was on August 30, according to SoSoValue data.
This lack of interest in ETH ETFs is particularly notable when compared to the positive momentum of Bitcoin. While BTC products are experiencing resounding success, Ether ETFs are struggling, with a deficit of $500 million since their introduction. Despite Ethereum’s technological potential, particularly as a platform for smart contracts and decentralized applications, this does not translate into enthusiasm for ETH ETFs in the US.
A Divergence That Raises Questions
This divergence between the two major cryptocurrencies in the market raises several questions. Institutional investors, who have greatly contributed to the increase in inflows into Bitcoin ETFs, seem less enthusiastic about investing in Ether via ETFs. This could be related to a riskier perception of ETH or a preference for Bitcoin, often seen as a digital safe-haven, compared to Ether, whose role is perceived as more utilitarian.
This trend also highlights the differences in maturity between the two markets. Bitcoin, often referred to as “digital gold,” benefits from wider adoption and a more stable image, while Ether continues to be perceived as more volatile and complex.
