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Ethereum ETFs Outshine Bitcoin in Netflows
Recent data reveals that Ethereum spot exchange-traded funds (ETFs) have consistently outperformed Bitcoin ETFs over the past week. This trend highlights a shift in investor preferences within the cryptocurrency market.
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Understanding Ethereum’s Edge in Spot ETFs
In a detailed analysis shared on the social platform X, Sentora, a prominent institutional DeFi solutions provider, delves into the recent developments in Ethereum’s spot ETF netflows. Spot ETFs enable investors to gain exposure to assets like Ethereum (ETH) without directly holding them, offering a user-friendly entry point for those unfamiliar with digital asset wallets and exchanges.
This investment route is relatively new, with Bitcoin receiving spot ETF approval from the US Securities and Exchange Commission (SEC) only in early 2024 and Ethereum following suit mid-year. Historically, Bitcoin spot ETFs have usually attracted more capital due to Bitcoin’s larger market presence. However, the current trend indicates a shift.
As reported by Sentora, Ethereum ETFs have surpassed Bitcoin ETFs in performance for seven consecutive days. This shift suggests a growing investor interest in Ethereum and a strengthening sentiment towards the asset.
Spot ETF Netflows: A Closer Look
Despite Ethereum’s recent outperformance, it’s important to note that the asset hasn’t been immune to outflows. Data from SoSoValue indicates that Ethereum ETFs experienced outflows recently, although they were less severe than those of Bitcoin. Notably, Ethereum’s netflows turned positive recently, with $455 million in inflows recorded on Tuesday.
Prior to the recent downturn, Ethereum spot ETFs had been experiencing a consistent weekly net inflow since May, as illustrated by the chart from on-chain analytics firm Glassnode.
Weekly Netflow and Active Addresses Trends
The recent week, which broke this streak, saw a net outflow of approximately 105,000 ETH, equivalent to $486 million. It remains to be seen if the trend will reverse by the end of the current week.
In addition to netflows, another indicator of interest is the number of active addresses on the Ethereum network. Sentora highlights a decline in this metric, with around 3.8 million addresses participating in transactions last week, a drop from early August’s peak but still robust compared to previous bull markets.
Ethereum Price Performance
Currently, Ethereum is trading at approximately $4,600, marking a 7% increase over the past week, reflecting a rebound from its recent lows.
As the cryptocurrency landscape continues to evolve, these trends offer valuable insights into investor behavior and market dynamics. Stay informed with our expertly curated content, designed to provide you with the latest and most accurate information.
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