Ethereum ETFs Facing Outflows as Bitcoin Gains Favor
Ethereum [ETH] is currently experiencing a shift in investor sentiment, with U.S.-listed Ethereum ETFs seeing significant outflows totaling over $760 million in the past month. This contrasts sharply with the renewed interest in Bitcoin [BTC], which has attracted $785 million in inflows to its ETFs in just the last six days.
Ethereum ETFs have been steadily losing favor among investors, with a noticeable decline in net assets as outflows continue to dominate the market. Inflows briefly spiked at the end of January, reaching a peak of over $300 million in a single day, but quickly reversed course in February and March, resulting in consistent outflows.
The chart of Ethereum ETF flows shows a pattern of red bars since mid-February, indicating a prolonged period of daily net outflows and a growing sense of caution towards Ethereum. Despite ETH trading just below $2,000, total net assets for Ethereum ETFs now stand at $6.77 billion.
Institutional investors appear to be losing confidence in Ethereum’s short-term performance, particularly as the focus of the market shifts towards Bitcoin. With outflows intensifying, Ethereum risks losing its position as the second most favored cryptocurrency among ETF investors.
The current trend suggests that Bitcoin is regaining dominance in the digital asset landscape, while Ethereum faces a challenging period of uncertainty. As investor sentiment continues to evolve, it will be interesting to see how Ethereum adapts to the changing market dynamics.
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