The US Spot Exchange Trade Fund (ETF) market is currently revealing a severe difference between Bitcoin and Ethereum. The Spot Bitcoin ETF recorded an additional net inflow of $89.06 million on March 27, 2025, achieving a 10th consecutive day of positive trends.
In contrast, the Spot Ethereum ETF has experienced an additional net spill totaling $4.22 million, extending its recent losing streak for 17 consecutive days.
This distinct difference in the capital movement shows a signal that changes investor preferences between the top two crypto assets, at least within regulated ETF rappers.
Why do Bitcoin ETFs continue to attract capital?
The US spot Bitcoin ETF shows updated strength following a short period of leaks featured at the beginning of March. They collected a significant net inflow of $744 million for the week of March 17-21.
These continued positive flows appear to help Bitcoin stabilize the price after the recent 12% market drawdown. Some experts have suggested that further unrealized benefits are possible for ETF holders as BTC trading levels could recover.
Related: As Bitcoin prices recover, crypto market sentiment reverses to neutral
Investors’ current preference for Bitcoin ETFs can be attributed to the recognized status of cryptocurrency as a more secure and established digital asset compared to Altcoins. The history of significant price surges further promotes bullish sentiment among some market participants.
Furthermore, many institutional investors primarily view Bitcoin as a powerful digital store, which continues to allocate capital to accessible products such as Spot ETFs.
What is behind the permanent spill of Ethereum ETF?
Despite Ethereum’s fundamental role in supporting large distributed financial (defi) and non-fan token (NFT) sectors through smart contract capabilities, the associated spot ETFs remain stagnant in terms of flow.
The data highlighted by trader “Trader T” was attributed to the March 27 leaks primarily to Vanek’s ETHV ($2.21 million) and Fidelity’s festival ($2.01 million), while other listed ETH funds saw no net change that day.
Several factors can contribute to the mute performance of ETFS. The prolonged regulatory concerns in the US, persistent delays regarding potential spot Ethereum ETF approvals (unlike previous approvals for Bitcoin), and increased competition with alternative Layer-1 and Layer-2 blockchain networks may all be examining the sentiment of investors of ETH exposure through these specific products.
While some experts believe that upcoming Ethereum network upgrades could rekindle investors’ interest, the general sentiment reflected in ETF flows has been cautious for now.
Looking ahead: Can ETH regain the momentum of the ETF?
Bitcoin is currently leading the spotlight in the ETF Flow Race, but market observers point out that Ethereum could regain momentum later. Positive developments due to layer 2 scaling solutions could enhance their capabilities or broader institutional adoption that leverages smart contract capabilities could serve as a catalyst for the future.
On the regulatory front, a favorable signal from US authorities regarding Defi monitoring could also spark new investors’ trust in ETH-related funds.
Related: Will Ethereum lose the edge of deflation as ETH Burns disappear?
For now, Crypto analysts offer mixed outlook. Some people predict long-term control of Bitcoin, reflected in current ETF flows. Some argue that Ethereum’s technical versatility and fundamental role in Web3 applications will drive long-term growth and ultimately attract greater institutional ETF capital.
Both assets continue to shape the demand for investors within the ETF space by providing clear value propositions and changing market dynamics, regulatory news, and technological advances.
Disclaimer: The information contained in this article is for information and educational purposes only. This article does not constitute any kind of financial advice or advice. Coin Edition is not liable for any losses that arise as a result of your use of the content, products or services mentioned. We encourage readers to take caution before taking any actions related to the company.
