Data shows that Bitcoin spot exchange-traded funds (ETFs) have continued to see outflows recently, while Ethereum funds have diverged with inflows.
Ethereum Spot ETFs saw net inflows on Monday
According to data from SoSoValue, Bitcoin and Ethereum spot ETFs have diverged in trend recently. “Spot ETFs” here refer to investment vehicles that allow investors to gain indirect exposure to an underlying asset.
For Bitcoin and Ethereum, these funds were launched in the United States in January and July 2024 respectively. Each time a trader invests in one of them, the corresponding fund buys and holds the cryptocurrency on behalf of the investor. This means that through these vehicles, traders can gain exposure to the price movements of a digital asset without having to interact with blockchain infrastructure, such as wallets and exchanges.
The convenience of spot ETFs, along with the fact that they are regulated by the Securities and Exchange Commission (SEC), has made them a popular mode of investment for BTC and ETH among traditional entities such as institutions. While ETFs are relatively new relative to the age of the assets, they have already established themselves as one of the cornerstones of the sector, acting as a gateway for significant capital exchange.
Lately, the sector has faced downwinds, so outflows have dominated spot ETFs. First, here’s a chart that shows the net flow of Ethereum funds trend:
Looks like the metric has just witnessed a positive spike | Source: SoSoValue
As the chart above shows, the net flow of the Ethereum spot ETF has been generally negative since May 7. During this capital outflow period, the price of ETH fell from $2,300 to below $1,600.
However, it is interesting to note that things have taken a turnaround in recent days. On June 4, spot ETH ETFs saw net inflows of $19 million, ending the streak of net outflows. On June 5, capital left the market again, although on a fairly limited scale. Today, Monday witnessed another positive spike in net flows, this time involving a significant $82 million.
Although Ethereum has seen conditions improve, the same cannot be said for Bitcoin.
The trend in the BTC spot ETF netflow over the last few months | Source: SoSoValue
The chart shows that Bitcoin also saw some inflows on June 4, but at $3 million, the net flow value was almost neutral. Since then, BTC has continued to experience net outflows, with Monday seeing a capital outflow of $91 million, more than the amount ETH saw going the other way.
As such, it would appear that at least some spot ETF investors are currently showing greater interest in Ethereum than Bitcoin.
ETH Price
Ethereum has rebounded a bit from its low, as its price is now trading around $1,670.
The price of the coin seems to have made some recovery | Source: ETHUSDT on TradingView
Featured image of Dall-E, chart from TradingView.com
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