- Ethereum ETFs drew five times the inflows of Bitcoin ETFs this week.
- Ether’ price sits within 5% of its all-time high set in 2021.
- Treasury adoption and SEC staking guidance fuel shift.
Spot Ethereum exchange-traded funds have outpaced their Bitcoin counterparts by a wide margin this week, raking in almost $3 billion in net inflows, more than five times Bitcoin’s $562 million, according to data from research platform SoSoValue.
“Two key catalysts are driving this surge: the momentum in crypto treasuries and the SEC’s recent guidance on liquid staking,” Illia Otychenko, lead analyst at CEX.IO, the crypto exchange, said in comments shared with DL News.
Crypto treasury companies’ Ethereum holdings have ballooned from $600 million to $11 billion over the past six weeks, he said.
This has fuelled the inflows into Ethereum ETFs, with “three of the top four inflow days since launch have occurred this week,” according to ETF Store president Nate Geraci.
The inflows also comes as Ethereum’s price has surged almost 19% over the past seven days to come within striking distance of breaking its 2021 all-time high.
Bitcoin reached another all-time high of $124,128 on Thursday, but the ETFs dedicated to it have not enjoyed the same inflows as their Ethereum counterparts.
Ethereum products drew $640 million on Thursday, following $729 million on Wednesday, $524 million on Tuesday, and a record above $1.02 billion on Monday, according to SoSoValue data.
By comparison, Bitcoin ETFs saw almost $2310.93 million, $876.91 million, $665.95 million, and $178 million over the same stretch.
The ETF rally comes two weeks after the US Securities and Exchange Commission approved in-kind creations and redemptions for spot Bitcoin and Ethereum ETFs, allowing their shares to be exchanged directly for the actual crypto asset rather than cash.
The change boosts transparency, lowers costs and improves tracking tools, making products more attractive to institutional investors.
Crypto market movers
- Bitcoin is up 1.6% over the past 24 hours to trade at $119,089.
- Ethereum is up 1.6% to trade at $4,639.
What we’re reading
- Crypto exchanges should block users from cashing out tokens with low ‘compliance scores,’ BIS researchers say — DL News
- Google Play Updates Rules for Crypto Wallet Apps — Unchained
- Why Ethena’s USDe got a 1,250% risk weighting in S&P Global’s Sky credit rating— DL News
- Why Is Crypto Selling Off Today? — Milk Road
- Bullish $1bn IPO leads weekly crypto raises: Here are three other crypto companies plotting public floats — DL News
Lance Datskoluo is DL News’ Europe-based markets correspondent. Got a tip? Email at lance@dlnews.com.
