Ethereum (ETH) spot exchange-traded funds (ETFs) have recently shown surprising strength. For a full week, they outperformed their Bitcoin (BTC) counterparts, a trend that’s catching the attention of market analysts.
What are Spot ETFs?
Spot ETFs are investment tools that let you get exposure to an asset like ETH or BTC without directly owning it. They trade on regular stock exchanges, making crypto investing easier for people unfamiliar with digital wallets or exchanges. Both BTC and ETH got SEC approval for spot ETFs in 2024, though BTC was first.
The Unexpected Shift
Usually, Bitcoin ETFs attract more investment because Bitcoin is the bigger, more established cryptocurrency. But recently, that changed. For seven straight days, ETH ETFs saw more investment than BTC ETFs. This suggests a shift in investor interest, with growing confidence in Ethereum.
It’s important to note that even though ETH ETFs outperformed BTC ETFs, it wasn’t all positive. Data shows some outflows (money leaving) before the recent positive trend. However, even during those outflows, ETH ETF losses were smaller than BTC ETF losses. Currently, the net flow is positive again, with $455 million in inflows reported recently.
Recent ETF Flow Data
Glassnode data reveals that ETH spot ETFs had positive weekly inflows since May, before a brief dip last week where around 105,000 ETH ($486 million) flowed out. Whether this week will continue the positive trend remains to be seen.
Ethereum Network Activity
Another indicator suggests a slight slowdown in Ethereum activity. The number of active addresses on the Ethereum blockchain (those participating in transactions) decreased slightly last week from its August peak, though it remains high compared to previous bull markets. Around 3.8 million addresses were active.
