Ethereum ETFs See Huge Inflows Despite Price Drop
The first week of February 2025 saw Ethereum spot ETFs rake in a whopping $420 million – double the amount flowing into Bitcoin ETFs. This happened even though Ethereum’s price took a 16.18% dive that week! SoSoValue’s data shows this was a significant difference, considering Bitcoin ETFs only saw $203 million in inflows.
Coinbase analysts think the surge in Ethereum ETF interest is because of a trading strategy called the CME basis trade. Basically, traders buy Ethereum now and sell it later, hoping to profit from the price difference. This strategy apparently yielded a higher return (16%) for Ethereum than for Bitcoin (10%) recently, attracting institutional investors to Ethereum ETFs.
Top Performing Ethereum ETFs
BlackRock’s ETHA was the star performer, attracting $286.81 million in investments. Fidelity’s FETH came in second with $97.28 million. Other ETFs like Grayscale’s ETHE, Bitwise’s ETHW, and 21 Shares’ CETH also saw smaller inflows. However, Invesco’s QETH, Franklin Templeton’s EZET, and VanEck’s ETHV saw no new money coming in.
Despite the positive inflows, the total assets under management for Ethereum ETFs slightly dropped to $9.88 billion last week. They currently represent 3.17% of Ethereum’s total market value.
Ethereum Price Update
At the time of writing, Ethereum is trading at $2,681, up 1.46% in the last 24 hours. However, trading volume is down significantly (45.15%), currently at $16 billion. The Relative Strength Index (RSI) is at 34.03 and rising, hinting at a possible price rebound after last week’s drop. If Ethereum’s price does rally, it will likely face resistance around $3400. Breaking through that level could potentially push the price back towards its recent high of $4,000.
