In a significant shift in the cryptocurrency landscape, recent trading data indicates that institutional interest is fervently pivoting towards Ethereum, outpacing Bitcoin for the very first time. On a noteworthy day for US spot-crypto exchange-traded funds (ETFs), Ethereum attracted over $600 million in net subscriptions, surpassing Bitcoin’s intake of approximately $522.6 million. These figures, reported by the analytics platform SoSoValue, signal a changing tide in a market that has seen Bitcoin dominate since mid-2024.
This surge in Ethereum’s popularity came hot on the heels of a record-breaking single-day influx of $726 million into Ethereum funds. This remarkable achievement raised total ETH holdings to nearly five million tokens and saw the price of Ethereum surpass the $3,400 mark, a level it had not reached since January of this year.
Ethereum Shines Brightly
The standout performer among Ethereum ETFs was BlackRock’s iShares Ethereum Trust (ticker ETHA), which garnered around $550 million—marking its second consecutive record-breaking day. This impressive growth has seen ETHA eclipse BlackRock’s Bitcoin ETF product, IBIT, in daily subscriptions. Data from Arkham Intelligence indicates that ETHA is now managing close to $7 billion in assets, which represents nearly one-fifth of total investments in US Ethereum ETFs.
According to Bloomberg Intelligence analyst James Seyffart, the combined US spot Ether ETFs have accumulated over $5.5 billion since their launch, including more than $3.3 billion since April alone. He suggests that this increased demand is driven in part by favorable market conditions, particularly a return to double-digit cash-and-carry yields on CME Ether futures. While futures positioning is a factor, it does not wholly account for the surge in institutional interest.
In addition to favorable market dynamics, Nasdaq has filed to allow staking for BlackRock’s ETHA. If approved, this feature could enable the fund to earn staking rewards, potentially increasing its yield above 5%. This development distinguishes Ether ETFs as viable options for both capital growth and income generation.
Conversely, Bitcoin retains its status as the heavyweight in the crypto ETF arena, accumulating a staggering $53 billion in net inflows since its January debut. Currently, Bitcoin spot products control over $150 billion in assets. ETF Store president Nate Geraci emphasizes that Bitcoin’s demand remains robust, with inflows recorded in 26 of the last 27 trading sessions, contributing an impressive “over $10 billion” in new investments attributed to institutional players.
Despite Bitcoin’s established dominance, the recent uptick in Ethereum inflows signals an important shift influenced by several Ethereum-specific factors. Analysts cite a six-month high in staking yields, expectations surrounding SEC approval for staking-enabled ETFs, and bipartisan support for legislative bills aimed at recognizing most major crypto assets as commodities.
The crucial question remains: will this transformation in market dynamics stand the test of time, or will it be viewed merely as a fleeting occurrence? Currently, the headline that Ethereum ETFs outperformed Bitcoin ETFs represents a pivotal moment in the crypto market landscape.
As of the latest updates, Ethereum is trading at $3,612.
