Bitcoin News

Story: Ether Funds Pull Nearly as Much Cash as Bitcoin ETFs Despite 8x Asset Gap

By Julie Binoche

1 / 15

Capital Flows Tell a Different Story Than Net Assets. Net assets and capital flows are two different things, and it's worth being clear on that.

2 / 15

What Investor Behavior Says About the Broader Market. There's a broader story here about how crypto investing has matured.

3 / 15

The Asset Gap Won't Close Overnight. Even if Ether funds keep matching Bitcoin ETF inflows week after week, closing that one-eighth…

4 / 15

Ether funds are on a run. Over the past three weeks, they've pulled in capital nearly matching what Bitcoin ETFs attracted — a striking gap given that Ether funds hold only about…

5 / 15

That ratio is worth sitting with for a second. One-eighth the assets. Nearly equal capital flows.

6 / 15

Net assets and capital flows are two different things, and it's worth being clear on that. Net assets reflect everything accumulated over time — years of inflows, price…

7 / 15

But the flow numbers don't care about history. Right now, investors are sending money into Ether funds at a rate that's nearly matching Bitcoin ETFs.

8 / 15

Why? Probably a few things. Ether has its own investment case — it's not just a smaller version of Bitcoin.

9 / 15

There's a broader story here about how crypto investing has matured. A few years ago, Bitcoin was basically the only game in town for institutional-style crypto exposure.

10 / 15

The fact that Ether funds can attract capital flows close to Bitcoin ETFs while holding a fraction of the assets is kind of remarkable when you think about it.

11 / 15

More context: Ethereum and Bitcoin ETFs Both Bleed on Friday Despite Strong July Inflow Totals

12 / 15

It's also worth noting that this doesn't mean Bitcoin ETFs are struggling. They're not. They're still pulling in serious capital.

13 / 15

No details were available on which specific Ether funds led the inflows or which Bitcoin ETF products saw the closest competition.

14 / 15

Even if Ether funds keep matching Bitcoin ETF inflows week after week, closing that one-eighth asset gap takes a long time. Compounding works slowly.

15 / 15

But the trend is the thing. Three weeks of near-equal capital flows is enough to get analysts talking.

The Currency Analytics

Want the full story?