- ETH ETFs have surpassed Bitcoin ETFs for the first time. It generated $1.8 billion in this week alone.
- Meanwhile, the 12 Bitcoin funds saw only $70 million in new assets over the same timeframe, experiencing net outflows on three of those five days. .
- The stablecoin bill was recently passed by the Trump administration and it is one of the driving forces behind Ethereum’s rally. Since most stablecoins run atop Ethereum, the demand for stables on ETH have catapulted. .
ETH ETFs Are On A Rollercoaster
This past week, the nine ETH-tracking ETFs collectively attracted over $1.8. billion in net new investments, marking a remarkable 16-day streak of positive inflows. In stark contrast, the 12 Bitcoin funds saw a mere $70 million in additions over the same period, with outflows observed on three of the five trading days.
This surge in interest for Ethereum ETFs coincides with a recent price rally for ETH, which traded around $3,915.48, up over 50% in the last month despite a slight dip from its seven-month high.
Experts attribute this heightened enthusiasm to several key factors, including the recent passage of the GENIUS Act stablecoin bill, which U.S. President Donald Trump signed into law last week.
Ric Edelman, founder of Digital Assets Council of Financial Professionals, asserted
“Many [investors] own Bitcoin ETFs and are increasingly interested in diversifying,”
ETH ETFs & ETH Skyrockets After Stablecoin Bill Passes
Experts attribute this heightened enthusiasm to several key factors, including the recent passage of the GENIUS Act stablecoin bill, which U.S. President Donald Trump signed into law last week. This legislation is widely expected to benefit Ethereum, given its dominant role as a platform for stablecoin transactions.
BlackRock’s Leads Drive ETH ETF Inflows
A spot Ethereum ETF is an investment fund traded on traditional stock exchanges that directly holds Ethereum (ETH). It allows investors to gain exposure to ETH’s price movements without having to directly buy and store the cryptocurrency themselves.
Ric Edelman, founder of the Digital Assets Council of Financial Professionals, noted that many investors who already hold Bitcoin ETFs are now looking to diversify their portfolios.
“Ethereum is the second-largest digital asset, and the only other one available in [spot] ETF format—making it very easy to choose it in one’s effort to improve their portfolio’s diversification,” Edelman explained.
BlackRock’s iShares Ethereum Trust (ETHA) spearheaded this week’s impressive performance, raking in $1.29 billion in investments.
ETHA also made history by becoming the third-fastest fund in the ETF industry’s 32-year history to reach $10 billion in assets under management (AUM), achieving this milestone in just 251 days. Only the iShares Bitcoin Trust (IBIT) and Fidelity Wise Origin Bitcoin Fund, which reached the $10 billion mark in 34 and 53 days respectively, achieved it faster. The Fidelity Ethereum Fund (FETH) also saw strong inflows, adding over $380 million and now boasts $2.3 billion in AUM.
Is This Rally Short Termed?
Juan Leon, senior investment strategist at ETF issuer Bitwise Asset Management, told Decrypt, that Ethereum funds have been steadily closing the gap with Bitcoin ETFs in terms of inflows over the past month.
He further added,
“If you look at the first week in July for the two assets where the difference in market cap is 5x, there was only a 3.5x gap between the inflows. And then the following week it narrowed further. And last week they were almost on par.”
Leon anticipates that Bitcoin ETFs will likely see renewed interest in the latter half of the year. This is primarily due to major “wirehouse platforms” like Merrill Lynch and Wells Fargo expected to begin offering Bitcoin ETFs as trading options before eventually greenlighting ETH ETFs.
“That’ll drive renewed flows into Bitcoin ETFs,” Leon commented. “So I’m not sure that ETH ETFs flows can continue to outperform Bitcoin’s for the remainder of the year.
But right now, we seem to be at least in a short-term inflection point, and irrespective of the absolute numbers, from the point of view of how big one asset is in relation to the other, ETH will continue to punch above its weight over the coming weeks and months.”
This marks a significant moment in the nascent crypto ETF market, demonstrating a growing maturity and a widening appeal beyond just Bitcoin.
Bitcoin dominance has collapsed a few times in the past three weeks however BTC still holds strong over Ethereum. However, experts believe that Ethereum is poised to break $4000 soon.