Ethereum ETFs Surge Ahead Amid Bitcoin’s Institutional Capital Outflows
Ethereum ETFs see institutional money inflow and strong market performance, while Bitcoin ETFs experience outflows. Solana notes a huge trading volume.
Ethereum ETFs’ Recent Performance
US spot Ethereum ETFs’ inflows hit $130.8 million on Monday alone. Conversely, Bitcoin (BTC) ETFs logged outflows of $226.5 million, making it the third week of continuous outflow.
Data from Farside Investors highlights the divide between the two leading cryptocurrencies. Ethereum is riding high from a week of positive news, particularly a favorable SEC position regarding approving Ethereum-based ETFs.
In contrast, Bitcoin’s ETFs have faced headwinds, especially during this holiday season. The recent performance of Ethereum ETFs has been remarkable, with the increasing participation of institutional money in the Ether market.
Data from IntoTheBlock showed that Ethereum ETFs’ inflows reached $1.66 billion as of December 23, which accounts for 74% of the total of $2.24 billion inflows since the launch date of Ethereum ETFs. BlackRock’s iShares Ethereum Trust has the largest inflow among its peers, gaining $292 million on December 5 alone, while Fidelity’s FETH also saw heavy inflows.
Bitcoin ETFs Struggling to Attract Institutional Capital Lately
Meanwhile, Bitcoin ETFs have continued to experience sustained outflows in the past weeks, reflecting waning institutional appetite. On Tuesday, Bitcoin ETFs suffered a combined outflow of $338 million.
Notably, the iShares Bitcoin Trust (IBIT) ETF saw an outflow of $188 million; Fidelity’s Wise Origin Bitcoin Fund and ARK 21Shares Bitcoin ETF lost $83.16 million and $75 million, respectively. While the Bitwise Bitcoin ETF (BITB) added $8.5 million in inflows, the negative net flows suggest a fading institutional appetite for Bitcoin products.
Solana Outperforms Bitcoin and Ethereum in Price Performance
According to on-chain data, Solana (SOL) beats BTC and ETH on the premise of capital inflows and price performance earlier this week. Solana inflows reached $776 million, topping Bitcoin and Ethereum’s performance.
This is a remarkable recovery for 2024, considering the coin’s price dramatic plunge to $9 in 2022 following the collapse of FTX. Since then, SOL’s price has surged more than 2000% as increased activity on its blockchain drives up demand for the network, particularly within the meme coin space.
With SOL the base currency for meme coin transactions on its blockchain, its growth trajectory reflects strong market confidence. Accordingly, the token reached a new all-time high of $263 on November 23.
The data also indicates that SOL has had a positive net capital inflow since September 2023, meaning the chain is attracting many new investors. This, alongside the increased activity of long-term holders taking profits, is one of the major driving factors for SOL’s price.
Large Ethereum Transfers by Justin Sun Spark Market Interest
In a related development, the founder of Tron, Justin Sun, has transferred about $245 million in Ethereum to a crypto exchange. He moved this amount, worth 70,182 ETH, to HTX on Christmas Eve.
The transferred amount was unstaked Ethereum from Lido Finance and Etherfi, raising Sun’s total deposits in HTX to 179,101 ETH, valued at more than $645 million based on the current market price.
The timing of Sun’s transfer suggests that he is positioning for a possible ETH rally, which some analysts predict could happen within the next few weeks. This move by Sun could affect Ether’s price, as large holders’ moves often impact the price movement of any token.
Analyst Predicts Ether’s Outperformance Over BTC In Early 2025
In a related development, a popular analyst has forecasted that Ether could outperform BTC in terms of price gains in January 2025. According to the founder of MN Capital, Michael van de Poppe, the ETH/BTC ratio shows indications to break above the 0.04 mark; it’s at 0.0356 currently.
If this forecast comes true, it will set a shift in dominance for Ethereum over Bitcoin and trigger an “altcoin run.” The analyst further notes that strong institutional interest will likely continue, boosting Ethereum’s outperformance.
In addition, increasing Ether ETF inflows into leading products such as BlackRock and Fidelity could also positively influence ETH’s price.
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