Bitcoin ETFs are drawing substantial investor interest, with funds continuing to flow in steadily.
In contrast, the launch of Ethereum ETFs hasn’t seen the same enthusiasm, facing significant outflows in the initial days without substantial inflows since.
ETH's MVRV is at 1.25, close to a key level. Our latest idea on @tradingview explores why you should watch this indicator👇
🔗https://t.co/1Ryfbjx8Gk pic.twitter.com/yQGZwR0oGv
— IntoTheBlock (@intotheblock) October 28, 2024
This discrepancy is impacting Ethereum’s performance, as ETH remains 55% below its recent high and continues to struggle relative to Bitcoin. The MVRV ratio for ETH stands at 1.25, nearing a critical level that suggests investors may be on edge.
Ethereum left in the dust?
These images display the Netflow USD for both BTC and ETH ETFs, showcasing a stark contrast.
The BTC ETF experienced massive hype, attracting a steady flow of investors, who continue to buy in. In contrast, the ETH ETF saw significant outflows in its… pic.twitter.com/6xGkFKvMb6
— Maartunn (@JA_Maartun) October 27, 2024
Ethereum’s recent drop in activity has also impacted its standing among the top protocols by daily fees, as it slipped to 6th place, generating $2.07 million in fees over the last 24 hours.
BREAKING: ETHEREUM DROPS OUT OF TOP 5 PROTOCOLS BY 24H FEES pic.twitter.com/mKqlHDG6R7
— DEGEN NEWS (@DegenerateNews) October 28, 2024
This decline reflects Ethereum’s challenge in maintaining traction amid fluctuating investor sentiment.
BREAKING: ETHEREUM DROPS OUT OF TOP 5 PROTOCOLS BY 24H FEES pic.twitter.com/mKqlHDG6R7
— DEGEN NEWS (@DegenerateNews) October 28, 2024
However, there are some bullish signs in Ethereum’s fundamentals. Analyst Ali Martinez reported that more than 300,000 ETH—valued at roughly $750 million—were withdrawn from exchanges over the past week. This could signal reduced sell pressure as investors move their holdings to private wallets, potentially holding out for future gains.
More than 300,000 #Ethereum $ETH have been withdrawn from crypto exchanges in the past week—valued at approximately $750 million! pic.twitter.com/LiuWamAfcX
— Ali (@ali_charts) October 27, 2024
Ethereum Spot ETFs Recorded Positive Feedback Last Week
In addition, Ethereum spot ETFs did see some positive movement last week, with a net inflow of $78.89 million. Although modest compared to Bitcoin ETF inflows, this increase shows there’s still institutional interest in Ethereum’s long-term potential, despite current market challenges.
Bitcoin spot ETFs had a net inflow of $998 million from October 21 to October 25 last week, BlackRock ETF IBIT had a net inflow of $1.15 billion, and ARK 21Shares Bitcoin ETF ARKB had a net outflow of $206 million. Ethereum spot ETFs had a net inflow of $78.89 million last week.… pic.twitter.com/SiKqZaJ81C
— Wu Blockchain (@WuBlockchain) October 28, 2024
While Ethereum’s price struggles relative to Bitcoin, these mixed signals highlight a complex environment. The contrasting momentum between Bitcoin and Ethereum ETFs may continue to impact ETH’s price in the near term, yet ongoing withdrawals and spot ETF inflows reflect underlying investor interest that could set the stage for future stability and growth.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
Follow us on Twitter @themerklehash to stay updated with the latest Crypto, NFT, AI, Cybersecurity, and Metaverse news!
Image Source: nexusplexus/123RF // Image Effects by Colorcinch