Ethereum ETFs Attract $2 Billion, Yet Trail Behind Bitcoin Funds

In the past four weeks, spot Ethereum ETFs have attracted over $2 billion in new investments, excluding a major $2.5 billion outflow from Grayscale’s ETHE, as reported by Farside Investors.

Nate Geraci, CEO of ETF Store, remarked that if all Ethereum ETF inflows were consolidated into a single fund, it would rank as the fourth-largest ETF debut ever. Currently, only Bitcoin ETFs—BlackRock’s IBIT, Fidelity’s FBTC, and ARK 21Shares’ ARKB—exceed this total.

Bloomberg’s Eric Balchunas highlighted that, globally, ETF investments have reached $911 billion for the year, with US-based spot crypto ETFs contributing $17 billion, or about 2% of the total. IBIT is now the third-largest ETF by inflows, approaching $20.5 billion, while FBTC has nearly $10 billion.

Despite hitting the $2 billion mark, Ethereum ETFs are not performing as well as their Bitcoin counterparts. Bitfinex analysts link this to Ethereum’s recent downturn, which saw its value fall by 40% in the last month.

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The broader economic climate has also impacted the market. Recent interest rate hikes in Japan have cooled investor enthusiasm, and a significant sell-off in the crypto market earlier this year led to notable losses.

Aurelie Barthere of Nansen noted that a subsequent sell-off from July to August further pressured Ethereum due to its increasing correlation with traditional equities, amid slowing US economic growth and high valuations in other risk assets.

Alexander Stefanov

With over 8 years of experience in the cryptocurrency and blockchain industry, Alexander is a seasoned content creator and market analyst dedicated to making digital assets more accessible and understandable. He specializes in breaking down complex crypto trends, analyzing market movements, and producing insightful content aimed at educating both newcomers and seasoned investors. Alexander has built a reputation for delivering timely and accurate analysis, while keeping a close eye on regulatory developments, emerging technologies, and macroeconomic trends that shape the future of digital finance. His work is rooted in a passion for innovation and a firm belief that widespread education is key to accelerating global crypto adoption.