Recent data indicates that Ethereum spot exchange-traded funds (ETFs) have experienced weekly inflows that are five times greater than their recent average, while Bitcoin's momentum appears to be slowing.
According to a post by the analytics firm Glassnode, Ethereum spot ETFs in the United States have seen an impressive influx of 154,000 ETH this week alone. Spot ETFs are investment instruments that provide alternative exposure to specific assets, allowing traders to invest without directly owning the underlying asset. This is particularly relevant in the cryptocurrency space, as these ETFs are available on traditional trading platforms. Many investors who prefer not to engage with digital asset exchanges and wallets find these ETFs to be a more accessible entry point into the crypto market.
The introduction of spot ETFs is a recent development, with Bitcoin's variant receiving approval from the U.S. Securities and Exchange Commission (SEC) at the beginning of 2024, followed by Ethereum's approval in mid-2024. A recent chart illustrates the net inflows for Ethereum's spot ETFs over the past month, revealing sustained demand from traditional investors. Glassnode highlighted that this week’s inflows of 154,000 ETH are significantly higher than the recent weekly average, noting that the highest single-day inflow this month was 77,000 ETH on June 11.
In contrast to Ethereum's growth, Bitcoin has shown a more mixed trend. The Bitcoin spot ETFs have also reported positive net inflows this week, but the volume is relatively modest, with approximately 7,800 BTC entering the funds. Although this figure is above average, it falls short of the peaks observed in May, when daily inflows reached as high as 7,900 BTC, surpassing the total inflows for the current week.
Last week, Bitcoin spot ETFs experienced a negative netflow, indicating a recent slowdown in momentum for the leading digital asset. Conversely, Ethereum has demonstrated much stronger performance in terms of ETF inflows.
Despite the positive inflow trend for Ethereum, its price has underperformed compared to Bitcoin in the last day, dropping to $2,540, which marks a decline of 7%, while Bitcoin has only seen a 2% decrease.
Image credit: Dall-E, Glassnode.com. Chart credit: TradingView.com.
