As their daily chart performance shows, Bitcoin, Ethereum, and other top altcoins are not exempt from bearish pressures.
Bitcoin and Ethereum, despite being the most liquid, are still showing double-digit declines over the past trading week.
As bulls push higher, traders are closely watching how prices will react in immediate sell-off zones.
Are Institutions Choosing Ethereum Over Bitcoin?
In the midst of all this, an analyst REMARK that while the focus has been on Bitcoin, given its role in crypto as the primary coin and base currency of most cryptocurrency pairs, there is movement in Ethereum.
Sharing ETF spot flows from the last three days, the analyst noted that there appears to be a rapid shift among institutions as they move money from the world’s most valuable coin to ETH.
This trend, illustrated by the recent massive inflows of capital into Ethereum spot ETFs amid drying up of capital flows into its Bitcoin counterpart, has sparked optimism. Confidence is high that ETH will be able to absorb the deluge of selling pressure and break above local resistances, mainly at $2,800 and $3,300.
To put the numbers into perspective, BlackRock’s spot Ethereum ETF product, the iShares Ethereum Trust (ETHA), has attracted capital and is the the biggest such product per asset under management.
Since its launch, ETHA has attracted nearly $870 million in admissions, according to Other side.
Interestingly, when prices dropped on August 5, investors bought $50 million worth of ETH via ETHA. An additional $109 million worth of these shares were purchased on August 6.
Analyzing Farside’s trading data, on August 6, all spot Ethereum ETFs saw inflows of over $98 million, with ETHA leading the way with $109 million. Fidelity’s FETH saw net inflows of $22.5 million, while Grayscale’s ETHE saw outflows of $39.7 million.
Bitcoin Spot ETFs See Outflows, But BTC Has the Upper Hand
Meanwhile, according to Farside, all spot Bitcoin ETFs saw outflows of $148 million on August 6. Interestingly, institutions appear to have favored BlackRock’s spot Ethereum ETFs as IBIT, the same asset manager’s spot Bitcoin ETF, saw no inflows.
Instead, there was a steady outflow from Fidelity’s spot Bitcoin exchange-traded fund, FBTC, which saw $64 million worth of shares repurchased. Grayscale’s GBTC also saw $32 million in outflows.
The changing demand situation explains why ETH could reverse its losses against BTC in the coming days. Bitcoin has the upper hand and is in a bullish breakout formation against Ethereum.
In fact, BTC has reached multi-year highs against ETH, and if inflows indicate demand, this trend could continue.
Main image from Canva, chart from TradingView
