Spot Ethereum ETFs (ETFs) have seen two straight weeks of outflows as investor sentiment cools after months of sturdy inflows.
According to data of SoSoValue’s products, Ether (ETH) saw total net redemptions of $243.9 million in the week ending Friday, following outflows of $311 million in the previous week.
The latest data puts the cumulative inflow across all spot Ether ETFs at $14.35 billion, with total net assets of $26.39 billion, representing approximately 5.55% of Ethereum’s market capitalization.
There was also $93.6 million in funding on Friday. BlackRock’s ETHA ETF led withdrawals with $100.99 million in outflows, while Grayscale’s ETHE and Bitwise’s ETHW saw minor inflows.
Related: Bitcoin ETF Apathy Puts Pressure on Bitcoin’s Key Support Level
Spot Bitcoin ETFs are gaining strength
Meanwhile, spot Bitcoin (BTC) ETFs saw renewed strength this week, recording $446 million in net inflows as institutional investors returned to the market, according to SoSoValue data.
On Friday, the products added another $90.6 million, bringing cumulative inflow to $61.98 billion and total net assets to $149.96 billion, representing 6.78% of Bitcoin’s market capitalization.
BlackRock’s iShares Bitcoin Trust (IBIT) led inflows with $32.68 million, followed by Fidelity’s FBTC, which added $57.92 million. Both funds remain dominant – IBIT has assets worth $89.17 billion and FBTC – $22.84 billion.
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Bitcoin ETF inflows surge as Ether demand declines
Vincent Liu, chief investment officer at Kronos Research, told Cointelegraph that current ETF flows suggest a “strong” rotation toward Bitcoin as investors double down on the “digital gold” and store of value narrative.
According to Liu, renewed confidence in Bitcoin reflects broader market sentiment favoring assets seen as resilient in the face of global uncertainty and expectations of upcoming interest rate cuts.
Meanwhile, continued ETF outflows from Ethereum highlight cooling needs and less activity in the supply chain, with institutional investors waiting for recent catalysts before re-entering the market.
Looking ahead to next week, Liu expects BTC inflows to remain sturdy as investors position themselves for potential macro upside in the form of monetary easing. “Ethereum and other alts can only recover when network activity increases or new catalysts emerge,” he added.
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