NEW YORK, August 17, 2024 — In a week of mixed fortunes for cryptocurrency exchange-traded funds (ETFs), Bitcoin ETFs managed to post modest positive inflows, while Ethereum ETFs faced a significant downturn. This divergence in performance highlights broader market trends influencing these two major cryptocurrencies.

Bitcoin ETFs attracted a total net inflow of approximately $32.58 million over the past week, despite a 2.7% drop in Bitcoin’s value. These inflows were accompanied by a robust trading volume of $7 billion, demonstrating sustained investor interest and confidence in Bitcoin-related investment vehicles.

In contrast, Ethereum ETFs experienced a challenging week, with net outflows of $14.16 million. Total trading volume for Ethereum ETFs plummeted to $1.06 billion, marking the lowest value since their inception. This decline in trading volume and investor interest reflects a broader slump in Ethereum’s value, which fell by 1.3% over the same period. The underperformance of Ethereum ETFs suggests growing caution among investors and a reassessment of their positions in the cryptocurrency.

The resilience of Bitcoin ETFs can be attributed to their longer establishment, more developed market infrastructure, and higher average trading activity. These factors have allowed Bitcoin ETFs to weather market fluctuations better and continue attracting inflows despite recent price declines. On the other hand, Ethereum ETFs, being relatively newer, have not yet achieved the same level of market penetration or investor trust. The recent outflows from Ethereum ETFs indicate that market participants might be shifting their focus to other assets amidst Ethereum’s sluggish price performance.