Record Inflows for Bitcoin and Ethereum ETFs
The month isn’t over yet, but Bitcoin and Ethereum ETFs have already set a record with $11.2 billion in inflows, according to crypto asset manager CoinShares. The final tally will arrive after the bell on Thursday.
Ethereum funds have been gaining attention, with CoinShares Head of Research James Butterfill noting that last week was no exception. Ethereum ETFs pulled in $1.6 billion worth of new cash, bringing their total to $7.8 billion for the year, surpassing 2024’s totals. It’s worth noting that Ethereum ETFs only launched around this time last year, limiting their trading time in the debut year.
Analysts at QCP Capital highlighted that ETH is a smaller asset than BTC, resulting in a greater impact from its market movements. With ETH’s market capitalization at just one-fifth of BTC’s, it requires less institutional and Corporate Treasury capital to affect price movements, as observed recently.
Bitcoin ETFs experienced a slight pullback last week, down $175 million. This has sparked discussions about a potential ‘altcoin season,’ with notable inflows into Solana and XRP amounting to $311 million and $189 million, respectively. Inflows for SUI funds were $8 million, but enthusiasm tapered off as Litecoin and Bitcoin Cash saw a combined $1.8 million in outflows.
Butterfill suggested that these altcoin inflows may not indicate broad enthusiasm but could be driven by anticipation of potential U.S. ETF launches. Recently, the SEC caused uncertainty in the crypto ETF sector after approving and then halting the conversion of Bitwise’s 10 Crypto Index ETF into a spot ETF, mirroring a similar situation with Grayscale’s Digital Large Cap Fund.
As of now, both Ethereum and Bitcoin are performing well. Ethereum has risen 1.9% to approximately $3,885, while Bitcoin has gained 0.7%, trading just under $119,000. Trading volume has been similar, with BTC at $39 billion and ETH at $34 billion in the past day.
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