Ethereum Overtakes Bitcoin in Institutional Investments
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Institutional Investments Shift Toward Ethereum
In an unprecedented shift in the 18-month timeline of US spot-crypto exchange-traded funds (ETFs), institutional funds have flowed more into Ethereum than Bitcoin. According to data from on-chain analytics platform SoSoValue, net subscriptions on Thursday for the nine US spot Ether ETFs reached $602 million. This figure surpasses the $522.6 million garnered by the 11 US spot Bitcoin ETFs, marking a historic moment in a market traditionally dominated by Bitcoin since July 2024.
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Remarkably, this change occurred only a day after Ethereum funds achieved a record-breaking $726 million in single-day inflows. This achievement pushed total holdings to nearly five million ETH and elevated the token’s spot price to over $3,400, a level not seen since January.
BlackRock’s iShares Ethereum Trust Leads the Charge
BlackRock’s iShares Ethereum Trust (ticker ETHA) was at the forefront, absorbing approximately $550 million, setting its personal best for the second day in a row. This influx enabled it to surpass BlackRock’s flagship Bitcoin product, IBIT, on the day’s rankings. Data from Arkham Intelligence and Farside Investors indicates that ETHA has accumulated $1.25 billion in the past five sessions, with nearly $7 billion in ETH assets under management, accounting for almost 20% of US Ethereum ETFs.
Market Analysis and Future Projections
James Seyffart, an analyst at Bloomberg Intelligence, contextualized this achievement on social media platform X, stating, “US spot Ether ETFs have collectively attracted over $5.5 billion since inception, with more than $3.3 billion coming in since mid-April.” He highlighted that the resurgence of a double-digit cash-and-carry basis on CME Ether futures contributes to this trend, although futures alone don’t fully explain the demand.
Additionally, structural factors are at play. Nasdaq’s recent filing to incorporate native staking into BlackRock’s ETHA could further enhance its attractiveness. If approved, this would allow the fund to earn network rewards and potentially boost its yield to over 5%, positioning Ether ETFs as both a growth and income asset.
Bitcoin’s Continuing Dominance
Despite Ethereum’s recent momentum, Bitcoin remains the market leader by sheer volume. Since their debut in January 2024, spot BTC ETFs have seen $53 billion in net inflows, controlling assets exceeding $150 billion. Nate Geraci, president of ETF Store, remarked on social media that Bitcoin’s demand remains robust. He noted that spot BTC products recorded inflows in 26 of the past 27 sessions, accumulating over $10 billion in fresh institutional capital.
The Future of Ethereum and Bitcoin ETFs
The shift in daily rankings highlights Ethereum’s growing momentum. Analysts credit this change to several Ethereum-specific catalysts, including a six-month high in staking yields, anticipation of SEC approval for staking-enabled ETFs by year-end, and bipartisan support for legislative bills like GENIUS and CLARITY that aim to establish commodity status for major cryptocurrencies.
The sustainability of this trend remains to be seen. Whether Thursday signals a lasting shift or merely a temporary variation will depend on ongoing market dynamics. Nonetheless, the headline “Ethereum ETFs Surpass Bitcoin ETFs” is now a reality.
As of the latest update, Ethereum is trading at $3,612.
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