Ethereum ETFs Face Second Week of Outflows as Investors Pivot Back to Bitcoin

Ethereum-based exchange-traded funds (ETFs) are losing traction as investor demand cools, marking a second consecutive week of outflows. In contrast, Bitcoin ETFs are experiencing a strong resurgence, drawing hundreds of millions in new capital as institutional investors rotate back into the market’s leading digital asset. The diverging flows highlight a shift in sentiment, with traders favoring Bitcoin’s relative stability over Ethereum’s recent weakness.

Ether ETF Outflows Continue, Signaling Shift in Investor Sentiment

According to data from SoSoValue, Ether ETFs posted $243.9 million in net redemptions for the week ending Friday, following $311 million in outflows the previous week. The back-to-back withdrawals mark a clear reversal after months of steady inflows earlier this year. On Friday alone, Ether ETFs recorded $93.6 million in redemptions.

Meanwhile, key Ether ETF performance for the week included:

• BlackRock’s ETHA ETF led withdrawals, with $100.99 million in outflows during the latest trading session.
• Grayscale’s ETHE fund showed a slight contrast, posting a modest $7.40 million in inflows amid broader sector redemptions.
• Overall, weekly outflows reflect waning investor appetite for Ethereum-based products following a strong inflow cycle earlier this year.
• Despite short-term weakness, cumulative inflows across all Ether spot ETFs remain robust at $14.35 billion, underscoring sustained long-term investor interest.
• Collectively, Ethereum ETF net assets now total $26.39 billion, representing roughly 5.55% of Ethereum’s market capitalization.

The total trading volume across Ether ETFs reached $1.41 billion for the week, signaling a decline in activity compared to prior periods of elevated demand.

Institutional Demand Drives $446 Million Inflows Into Bitcoin ETFs

While Ethereum-focused products continue to lag, spot Bitcoin ETFs have rebounded sharply. The funds attracted $446 million in net inflows for the week, signaling renewed institutional enthusiasm.

Friday’s data shows that:

• Bitcoin ETFs added $90.6 million in new inflows, reflecting continued institutional participation.
• Cumulative inflows across all spot Bitcoin ETFs have reached $61.98 billion.
• BlackRock’s iShares Bitcoin Trust (IBIT) led daily activity with $32.68 million in inflows, maintaining its dominant position among Bitcoin funds.
• Fidelity’s Wise Origin Bitcoin Fund (FBTC) followed closely, attracting $57.92 million.
• IBIT remains the largest Bitcoin ETF, holding $89.17 billion in assets, while FBTC manages $22.84 billion.

Following this strong performance, total net assets of Bitcoin investment vehicles stand at $149.96 billion, representing about 6.78% of Bitcoin’s market cap. Meanwhile, total trading volume among Bitcoin ETFs reached $3.34 billion for the week.

Kronos CIO Notes Waning Ethereum Activity as Institutions Favor Bitcoin

Vincent Liu, Chief Investment Officer at Kronos Research, said the latest trends show a clear shift toward Bitcoin as investors favor its digital gold appeal during a period of global market uncertainty. He noted that Bitcoin’s resilience, combined with expectations of monetary easing, has strengthened its appeal as a store of value.

In contrast, Ethereum’s ongoing ETF outflows highlight softening demand and declining on-chain activity. Liu added that institutional investors may be waiting for clearer catalysts before re-entering the Ether market.

At the time of writing, Bitcoin trades at $111,383, while Ethereum stands at $3,948—both showing limited movements as markets await next week’s macroeconomic developments.