Recent data shows a rapid increase in institutional investments in Ethereum, highlighting interest in cryptocurrencies beyond Bitcoin.
Inflow to Ethereum ETFs
On Tuesday alone, Ethereum ETFs attracted $533 million, with BlackRock leading the charge by adding $426 million in a single day. This highlights the growing interest from institutional investors in Ethereum, while flows into Bitcoin ETFs start to cool.
Comparison with Bitcoin ETFs and Forecasts
Bitwise CIO Matt Hougan noted that Ethereum exchange-traded products remain underrepresented compared to Bitcoin ETPs. Ethereum commands nearly 20% of Bitcoin's market cap. He believes that Ethereum demand could soar to $20 billion within a year—about seven times more than the expected new ETH supply.
Market Movements and Their Significance
Blockchain analytics firm Lookonchain reported that five wallets withdrew a combined $285 million in ETH from Kraken. Such movements are often viewed as signals of accumulation, reinforcing the expectation of further upside among long-term investors. Meanwhile, Bitcoin ETFs experienced outflows of $68 million, indicating a growing willingness among investors to diversify beyond Bitcoin, with Ethereum emerging as a serious institutional contender.
The growing interest in Ethereum ETFs suggests a shift in focus in the cryptocurrency market. While Bitcoin is losing ground, Ethereum continues to gain popularity among institutional players.
