Ethereum ETF Frenzy: Inflows Jump 5x While Bitcoin Stalls

Keshav Verma

4 weeks ago

2 mins read

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Data shows the Ethereum spot exchange-traded funds (ETFs) have seen weekly inflows five times the recent average, while Bitcoin has seen a slowdown in momentum.

Ethereum Spot ETFs Have Seen 154,000 ETH In Inflows This Week

In a new post on X, the analytics firm Glassnode has talked about the latest trend in the netflow related to the US-based Ethereum spot ETFs. The “spot ETFs” refer to investment vehicles that allow an alternate means of exposure to a given asset.

This means that with a spot ETF, a trader can ‘invest’ into an asset without having to directly own it. In the context of cryptocurrencies, this is especially relevant, as the ETFs trade on traditional platforms. Some investors may not want to fiddle with digital asset exchanges and wallets, so the ETFs offer them a familiar path into cryptocurrencies.

The option of the spot ETFs is a relatively recent one in the sector, with Bitcoin’s version gaining approval from the US Securities and Exchange Commission (SEC) at the start of 2024 and Ethereum’s in mid-2024.

Below is a chart that shows how the netflows related to the latter’s spot ETFs have looked during the past month.

Ethereum ETF Netflows — The value of the metric appears to have been positive in recent days | Source: Glassnode on X

From the graph, it’s visible that the Ethereum US spot ETFs have been witnessing net inflows for the last few weeks, a sign that there has been demand for the coin from the traditional investors.

“This week alone, they’ve seen 154K ETH in inflows – 5x higher than their recent weekly average,” notes Glassnode. “For context: the biggest single-day ETH inflow this month was 77K ETH on June 11th.”

While the trend has been that of growth for Ethereum, it has looked a bit more mixed when it comes to the number one digital asset, Bitcoin.

Bitcoin spot ETFs — The trend in the netflow associated with the BTC spot ETFs | Source: Glassnode on X

As displayed in the above graph, the Bitcoin US spot ETFs have also seen positive netflows this week. The scale of the inflows, however, hasn’t been anything impressive, as only around 7,800 BTC has entered into the ETFs.

This is above average, but far lower than the highs witnessed in May, when at one point the daily inflow had reached a peak of 7,900 BTC, more than the inflows for the entire current week.

Last week, the Bitcoin spot ETFs witnessed an outright negative netflow, so it seems the momentum has recently just been slower for the asset. In contrast, things have looked much more green for Ethereum indeed.

ETH Price

While Ethereum has been seeing consistent ETF inflows, its price has still underperformed against Bitcoin over the past day as it has dropped to $2,540, a decline of 7% compared to BTC’s 2% loss.

Ethereum Price Chart — The price of the coin has just gone through a crash | Source: ETHUSDT on TradingView

Featured image from Dall-E, Glassnode.com, chart from TradingView.com

Keshav Verma

Keshav is currently a senior writer at NewsBTC and has been attached to the website since June 14, 2021.

Keshav has been writing for many years, first as a hobbyist and later as a freelancer. He has experience working in a variety of niches, even fiction at one point, but the cryptocurrency industry has been the longest he has been attached to.

In terms of official educational qualifications, Keshav holds a bachelor’s degree in Physics from one of the premier institutes of India, the University of Delhi (DU). He started the degree with an aim of eventually making a career in Physics, but the onset of COVID led to a shift in plans. The virus meant that the college classes had to be delivered in the online-mode and with it came free time for him to explore other passions.

Initially only seeking to make some beer money, Keshav unexpectedly landed clients offering real projects, after which there was no looking back. Writing was something he had always enjoyed and to be able to do it for a living was like a dream come true.

Keshav completed his Physics degree in 2022 and has been focusing on his writing career since, but that doesn’t mean his passion for Physics has ended. He eventually plans to re-enter university to obtain a masters degree in the same field, but perhaps only to satiate his own interest rather than for using it as a means to find employment..

Keshav has found blockchain and its concepts fascinating ever since he started going down the rabbit-hole back in 2020. On-chain analysis in particular has been something he likes to research more about, which is why his NewsBTC pieces tend to involve it in some form.

Being of the science background, Keshav likes if concepts are clear and consistent, so he generally explains the indicators he talks about in a bit of detail so that the readers can perhaps come out having understood and learnt something new.

As for hobbies, Keshav is super into football, anime, and videogames. He enjoys football not only as a watcher, but also as a player. For games, Keshav generally tends towards enjoying singleplayer adventures, with EA FC (formerly FIFA) being the only online game he is active in. Though, perhaps due to being ultra-focused on the game, he is today a semi-pro on the EA FC scene, regularly participating in tournaments and sometimes even taking back prize money.

Because of his enthusiasm for anime and games, he also self-learned Japanese along the way to consume some of the untranslated gems out there. The skill didn’t merely remain as just a hobby, either, as he put it to productive use during his exploration for small-time gigs at the start of COVID, fulfilling a couple of Japanese-to-English translation jobs.

Keshav is also big into fitness, with agility and acceleration-related workouts making a big part of his program due to the relevance they have in football. On top of that, he also has a more traditional strength based program for the gym, which he does to maintain an overall fitness level of his body.

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