Ethereum ETFs Attract Nearly $3 Billion in Weekly Inflows, Outpacing Bitcoin Fivefold

U.S. spot Ethereum exchange-traded funds (ETFs) have experienced a significant surge in investor interest over the past week, attracting nearly $3 billion in net inflows. This substantial capital influx marks a more than fivefold increase compared to the approximately $562 million directed into Bitcoin ETFs during the same period, according to data from research platform SoSoValue. The robust performance has led some market observers to suggest a growing institutional preference for Ethereum.

Over the past seven days, Ethereum ETFs have consistently seen strong inflows, with major contributions from funds like BlackRock’s iShares Ethereum Trust (ETHA) and Fidelity’s Ethereum Fund (FETH). August 11, for instance, recorded a single-day inflow of over $1 billion for Ethereum ETFs, underscoring the accelerating institutional demand. Cumulative inflows into spot ETH ETFs have now surpassed $10.8 billion since their launch.

The surge in Ethereum ETF inflows is attributed to several key catalysts. Illia Otychenko, lead analyst at CEX.IO, pointed to "the momentum in crypto treasuries and the SEC’s recent guidance on liquid staking." Furthermore, the recent approval by the U.S. Securities and Exchange Commission (SEC) for in-kind creations and redemptions for spot Bitcoin and Ethereum ETFs has enhanced transparency and lowered costs, making these products more appealing to institutional investors.

This increased institutional accumulation of Ethereum has contributed to a tightening supply, with exchange balances reportedly at record lows. The heightened demand has also positively impacted Ethereum's price, which has surged nearly 19% over the past week, nearing its 2021 all-time high. In contrast, while Bitcoin recently reached a new all-time high of $124,128, its corresponding ETFs have not mirrored Ethereum's inflow momentum.

The notable disparity in inflows has sparked discussions about Ethereum's growing appeal among Wall Street investors. As stated by crypto analyst rip.eth on social media, the significant inflows suggest that "Wall Street loves ETH" and that "ETH is the new BTC," reflecting a sentiment of increasing confidence in Ethereum's utility and growth potential within the financial sector. Analysts like Erhan Korhaliller, founder of EAK Digital, suggest Ethereum's smart contract capabilities and yield-bearing properties make it more attractive than Bitcoin for certain institutional strategies.