Recent trends show significant changes in the dynamics of Bitcoin and Ethereum ETFs, reflecting ongoing market movements.
Outflows from Bitcoin ETFs
On Monday, a net outflow of $131.35 million marked the end of a 12-day inflow streak for Bitcoin ETFs. The largest outflow was from Ark & 21Shares’ ARKB fund, accounting for $77.46 million. Significant outflows were also reported from ETFs managed by Grayscale, Fidelity, Bitwise, and VanEck. Additionally, BlackRock’s IBIT recorded neutral flows.
Inflows to Ethereum ETFs
In contrast, Ethereum ETFs captured a total inflow of $296.6 million on the same day. Fidelity’s Ethereum ETF (FETH) welcomed a significant $126.93 million, while BlackRock’s ETHA saw a $102 million inflow. Overall, Ethereum ETFs experienced a robust inflow of $3.53 billion over 12 days.
Market Speculations
Analyst Min Jung from Presto Research commented that ETF flows reveal a familiar rotation from Bitcoin to Ethereum. He suggests that investors who believe they missed the major Bitcoin rally are now turning their attention to Ethereum. Jung interprets a 5% reduction in Bitcoin’s market dominance over the past week as a sign of a downward shift in the risk curve. The current market rally is predominantly driven by institutional capital.
The shifts in capital flows from Bitcoin ETFs toward Ethereum ETFs highlight current trends in the cryptocurrency market and possible prospects for altcoins.
