Spot Ethereum ETFs are gaining strong momentum in the U.S. market, recording $455 million in net inflows on Tuesday, outpacing Bitcoin ETFs for the second time this week. This marks four consecutive days of positive flows for Ethereum-based funds, signaling a growing institutional preference for the second-largest cryptocurrency.
Ethereum ETFs See Strong Institutional Demand
Data from SoSoValue shows that BlackRock and Fidelity led the surge in inflows. BlackRock’s ETHA recorded $323 million, while Fidelity’s FETH added $85.5 million. Grayscale’s ETHE and Mini Ethereum Trust also reported positive flows, further boosting Ethereum’s lead over Bitcoin ETFs.
By comparison, spot Bitcoin ETFs recorded $88.2 million in total inflows across six funds, highlighting a clear rotational trend toward Ethereum.
Why Investors Are Choosing Ethereum ETFs
Analysts point to several factors driving this shift. According to LVRG Research Director Nick Ruck, the move toward Ethereum is fueled by its yield-generating capabilities, regulatory clarity, and increasing adoption by corporate treasuries.
This trend suggests institutional investors see Ethereum as more than just a cryptocurrency — it’s viewed as a platform for decentralized finance (DeFi) and tokenization, making it attractive for long-term growth.
The surge in ETF inflows coincides with a broader crypto market recovery. As of early Wednesday, Ethereum climbed 3.37% to $4,570, while Bitcoin gained 0.58% to $110,822. Major altcoins also followed the upward trend, signaling renewed confidence in the market despite earlier price dips.
The latest data confirms strong institutional confidence in Ethereum, as it continues to outperform Bitcoin ETFs in net inflows. If this trend persists, Ethereum could strengthen its position as a leading asset for institutional portfolios, supported by real-world use cases and DeFi expansion.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.