In a remarkable turn of events, the world of cryptocurrency saw a historic transition on Thursday when Ethereum, for the first time in the 18-month journey of U.S. spot crypto exchange-traded funds (ETFs), outperformed Bitcoin in institutional cash inflows. Data compiled by on-chain analytics platform SoSoValue revealed that Ethereum ETFs absorbed $602 million in net subscriptions, while Bitcoin ETFs garnered $522.6 million. This significant shift marks a pivotal moment in a market where Bitcoin has long held the upper hand.
What further highlights this moment is that the inflow figures came just one day after Ethereum funds achieved a staggering $726 million in a single-day record, propelling total holdings to nearly five million ETH. The surge lifted Ethereum’s spot price above $3,400 for the first time since January, reflecting growing institutional interest and investor confidence.
Ethereum Leads the Pack
At the forefront of this wave was BlackRock’s iShares Ethereum Trust (ticker ETHA), which absorbed approximately $550 million during this record-breaking day. This marked ETHA’s second consecutive personal best, as it overtook BlackRock’s flagship Bitcoin product (IBIT) in the daily inflow rankings. Arkham Intelligence and Farside Investors’ data indicates that ETHA has accumulated $1.25 billion over the past five trading sessions, now holding close to $7 billion worth of ETH, or nearly one-fifth of total assets in U.S. Ethereum ETFs.
Bloomberg Intelligence analyst James Seyffart emphasized the significance of this achievement by noting that U.S. spot Ethereum ETFs have taken in over $5.5 billion since their introduction, with more than $3.3 billion of that amassed since mid-April. According to Seyffart, a contributing factor to this influx of capital is the return of a double-digit cash-and-carry basis on CME Ethereum futures. He believes that while futures positioning plays a role, it does not entirely explain the staggering demand observed.
Beyond futures, there are potential structural tailwinds that could be influencing Ethereum’s momentum. Notably, Nasdaq has filed to add native staking capabilities to BlackRock’s ETHA, a development that, if approved, would allow the fund to earn network rewards. This could elevate the headline yield above 5%, merging the characteristics of a growth asset with those of an income instrument.
While Bitcoin remains the heavyweight champion in terms of sheer scale, accumulating $53 billion in net inflows since its January 2024 debut and controlling assets exceeding $150 billion, the recent surge in Ethereum ETFs indicates a palpable momentum shift. Nate Geraci, president of the ETF Store, reiterated on social media that Bitcoin demand remains robust, with spot BTC products logging inflows in 26 of the past 27 sessions and adding “over $10 billion” in institutional capital.
This disparity in inflow metrics reflects a tectonic shift in market sentiment. Analysts attribute this change to Ethereum-specific catalysts, including a six-month high in staking yields and growing anticipation of SEC approval for staking-enabled ETFs by year-end. Additionally, the bipartisan momentum behind legislative measures such as the GENIUS and CLARITY bills could provide further stability to the crypto landscape, solidifying the commodity status of large-cap digital assets.
As of now, it’s too early to tell if Thursday’s figures signal a true inflection point for Ethereum or if they represent a momentary statistical blip. Regardless, the headline—“Ethereum ETFs Beat Bitcoin ETFs”—stands as a testament to a shifting landscape in the cryptocurrency market, capturing both investor interest and market dynamics.
At press time, ETH was trading at $3,612, indicating continued strength in the asset. This current atmosphere of heightened interest and participation suggests a volatile yet thrilling arena for cryptocurrency enthusiasts and institutional investors alike.
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