Ethereum attracts institutional capital while Bitcoin bleeds

Ethereum ETFs observed $130.8 million in inflows on Monday, even as Bitcoin ETFs continued their outflow streak.
IntoTheBlock research shows Ethereum ETF inflows have accelerated in December, marking 74% of the total inflows since inception.
Ethereum ranges around $3,400, showing signs of recovery on the weekly price chart.

Ekta Mourya FXStreet

Ethereum Spot ETFs hit a key milestone on Monday when the product garnered inflows while Spot Bitcoin ETFs recorded another outflow, extending the streak of declining institutional demand.

Farside Investors data shows $130.8 million in institutional capital flowed into Ethereum ETFs on Monday while investors pulled $226.5 million out of Spot Bitcoin ETFs. For Bitcoin, this marks the third outflow, amidst the token’s price crash.

Ethereum ETFs benefit while Bitcoin struggles in December

Ethereum (ETH) ETFs benefit from a series of positive developments in the past few weeks. While traders await the approval of passing staking benefits to Ether ETFs, the US Securities and Exchange Commission (SEC) approved the first Bitcoin-Ethereum ETF and paved the way for further institutional capital inflow to the altcoin.

Research from IntoTheBlock shows that ETF inflows climbed in December. ETF providers have recorded $1.66 billion in new investments, as of December 23. This represents 74% of the $2.24 billion inflows since the inception of Ethereum ETFs.

The biggest gainer is BlackRock's iShares Ethereum Trust with inflows reaching a single-day high of $292 million on December 5. The second popular choice is Fidelity's FETH and other providers have a modest spread of inflows.

Spot Ethereum ETF Flows

Meanwhile Bitcoin faces a volatile holiday season with Q4 gains capped at close to 53% and price hovering over 10% below its all-time high of $108,353.

Ethereum vs. Bitcoin: Price performance and expectations

Derivatives traders are bullish on gains in Bitcoin and Ethereum, according to Coinglass data. The long/short ratio is greater than one for most derivatives exchanges and both assets, as of Tuesday.

Both Bitcoin and Ethereum’s weekly price charts shows signs of a recovery in the token prices after the recent correction in cryptocurrencies. While Ethereum hovers around $3,400 on December 24, Bitcoin is rallying towards the resistance at $99,000, closer to the $100,000 milestone for the token.

Author

Ekta Mourya

FXStreet

Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.