ETH Funds Surge Amid Record Inflows, Outpacing Bitcoin Growth
New data highlights strong investor demand for Ethereum-linked funds, which experienced record weekly inflows of nearly $1 billion during their 12th consecutive week. According to CoinShares Research Head James Butterfill, Ethereum funds have grown at a faster pace than Bitcoin funds over the last three months.
Key Highlights
- Ethereum fund inflows reached $990 million during the most recent week.
- Over the past 12 weeks, Ethereum funds’ assets under management (AUM) increased 19.5% to $19.6 billion.
- In contrast, Bitcoin fund AUM grew 9.8% over the same period to $176 billion.
- Ethereum’s price has surged 85% in the last three months, climbing back above the $3,000 mark.
- Bitcoin ETFs manage over $148 billion in assets, while Ethereum ETFs manage ~$12.7 billion.
Analysts suggest institutional investors are increasingly favoring Ethereum over Bitcoin, citing its rising narrative and recent price performance despite not yet reaching its pandemic-era high of $4,900.
“People are preferring Ethereum over Bitcoin,” Butterfill told Decrypt. “Although the number is lower [for Ethereum] than Bitcoin, proportionally, it’s much more significant.”
Market Context
Ethereum surpassed a five-month low recently but continues its ascent, which has outpaced Bitcoin’s recent gains although Bitcoin recently hit a new all-time high of $122,800.
Despite the surge in Ethereum ETFs, adoption remains muted compared to established Bitcoin products. While Bitcoin ETFs garnered significant interest on Wall Street, Ethereum’s newer ETFs manage significantly lower assets.
Miscellaneous Cointrends
- Solana continued its momentum with $92 million in weekly fund inflows, raising year-to-date total inflows to $206 million.
- XRP saw significant price appreciation (+31%) but pulled $104 million from funds in the last week, reducing year-to-date inflows.
Despite outflows from a single XRP fund earlier in the week, analysts view the broader trend as positive for some altcoins, though the overall crypto market remains dominated by Bitcoin and Ethereum.
