According to the data, Bitcoin spot exchange-traded funds (ETFs) have been experiencing outflows recently, while Ethereum funds have been seeing inflows and divergence.
Ethereum Spot ETF records net inflows on Monday
Trends in Bitcoin and Ethereum spot ETFs have diverged recently, according to data from SoSoValue. “Spot ETF” here refers to an investment vehicle that allows investors to gain indirect exposure to the underlying asset.
In the case of Bitcoin and Ethereum, these funds were established in the US in January and July 2024, respectively. Every time a trader invests in one of them, the corresponding fund buys and stores that cryptocurrency on the investor’s behalf. This means that traders are exposed to price fluctuations of digital assets through these instruments without interacting with blockchain infrastructure such as wallets or exchanges.
Spot ETFs have become a popular way to invest in BTC and ETH among traditional organizations such as financial institutions due to their convenience and the fact that they are regulated by the Securities and Exchange Commission (SEC). Although ETFs are relatively new compared to the birth of assets, they have already established themselves as one of the cornerstones of the sector, serving as a gateway for large-scale capital exchanges.
Spot ETF outflows have been predominant as the sector has faced bearish winds recently. First, here is a graph showing the trend of the net flow of Ethereum funds.
Looks like the metric has just witnessed a positive spike | Source: SoSoValue
As shown in the chart above, the Ethereum Spot ETF’s net flows have been mostly negative since May 7th. During this capital withdrawal period, ETH price fell from $2,300 to less than $1,600.
But interestingly, the situation has reversed in recent days. On June 4th, the ETH Spot ETF recorded a net inflow of $19 million, ending its streak of net outflows. Capital exited the market again on June 5th, but on a much smaller scale. Now, on Monday, netflows spiked again, this time to a whopping $82 million.
While things are improving for Ethereum, the same is not necessarily true for Bitcoin.
The trend in the BTC spot ETF netflow over the last few months | Source: SoSoValue
From the chart, we can see that Bitcoin also had some inflows on June 4th, but the net inflow was $3 million, which was similar to neutral. BTC has continued to face net outflows since then, with $91 million in outflows observed on Monday, more than the amount ETH reversed.
As such, it appears that at least some spot ETF investors are currently showing more interest in Ethereum compared to Bitcoin.
ETH price
Ethereum has rebounded a bit from its lows, with the price currently trading around $1,670.
The price of the coin seems to have made some recovery | Source: ETHUSDT on TradingView
Featured image from Dall-E, chart from TradingView.com
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