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Investment patterns for Bitcoin and Ethereum exchange-traded funds (ETFs) are showing varying trends

Cryptocurrency ETF outflows reach $1.2 billion as investors cash in on Bitcoin, while Ethereum ETFs attract continuous institutional investments over a 12-day period. Here's the expert assessment.

Investors' profit-taking leads to a $1.2 billion outflow from Bitcoin ETFs, contrary to the influx...
Investors' profit-taking leads to a $1.2 billion outflow from Bitcoin ETFs, contrary to the influx of funds into Ethereum ETFs over a 12-day period, indicating surging institutional interest in Ethereum. Analysts provide their opinions on this development.

In a Nutshell

  • Bitcoin ETFs encountered $1.2 billion in withdrawals over a three-day span, with investors cashing in at record highs, whereas Ethereum ETFs witnessed inflows of $634 million, marking their twelfth consecutive day in the green.
  • SharpLink Gaming, a publicly traded gaming firm, secured $425 million in funding to launch an Ethereum treasury, leading to a surge in its share price, albeit with significant volatility.
  • The escalating interest from institutions in Ethereum is attributed to the network's growing prominence, increased scalability promises for the coming year, and favorable market sentiment.

The Art, Fashion, and Entertainment SCENE

Bitcoin ETF withdrawals soared past $1.2 billion over the past three days, while Ethereum ETFs raked in $78 million in inflows on Monday, marking the twelfth day of greens in a row for the latter. Analysts view this inverse flow as institutional investors selling Bitcoin at peak prices while Ethereum garners institutional attention.

"In contrast, Ethereum ETFs have recorded persistent inflows, totaling $634 million since the streak started—the most notable accumulation trend since ETF approval," commented Valentin Fournier from BRN. "This division suggests an expanding institutional interest in Ethereum, while giving evidence of sustained Bitcoin profit-taking, particularly when retail appetite remains lukewarm."

Ethereum co-founder and Consensys CEO Joseph Lubin expressed enthusiasm about SharpLink Gaming, which recently raised $425 million in investments to establish an Ethereum treasury. (Full Disclosure: Consensys is one of the 22 investors in an editorially independent Decrypt.)

"Soon enough, stablecoins will replace dollars in global settlement. Public markets are beginning to grasp this concept. We're pleased to lead a $425 million private placement into SharpLink ($SBET) to expose traditional capital markets to Ethereum," Lubin posted on his platform.

It is worth noting that SBET has faced a rocky start as an Ethereum treasury company. Its share price peaked at $105.59 on Friday, only to slide to $46.34 the following day and rebound by 29% to $71.60 at the time of writing.

While Ethereum has risen above $2,600 and has gained 4.5% since the same time yesterday, Bitcoin has risen by only 1.8% and is trading at approximately $106,000.

Despite the market's fragile conditions, Fournier of BRN maintains a high-risk allocation and is leaning further into outperforming assets.

However, the optimism surrounding Ethereum is rooted in the network's roadmap, which has inspired greater confidence among investors. GSR analyst Carlos Guzman noted:

"There was a significant amount of criticism regarding Ethereum's slow pace on the layer-2 front. However, the Ethereum Foundation has noticeably altered its strategy to prioritize the L1 layer. While still backing L2s, there's now a focus on the L1 as well," he told Decrypt.

Contributions by Decrypt reporter André Beganski and Edited by Andrew Hayward

Daily Debrief Newsletter

Institutional Interest in Ethereum: In 2025, the wave of institutional interest in Ethereum has often matched or even eclipsed that of Bitcoin, especially in recent weeks. Ethereum reported its highest weekly institutional inflows of 2025 at $205 million, suggesting a surge in confidence among large investors. This institutional enthusiasm is manifested not only in direct crypto purchases but also through the rising premiums for crypto-linked financial products like Grayscale Ethereum Trust, which peaked at $28.50 per share in early June 2025.

Multifarious factors are lifting this trend:

  • Protocol Upgrades and DeFi Dominance: Ethereum continues to strengthen its position as the primary blockchain for decentralized finance (DeFi), with over $45 billion in total value locked. Ongoing protocol upgrades aimed at boosting scalability and reducing fees are fostering institutional confidence in Ethereum's long-term viability.
  • Market Preferences Shifting: The increasing ETH/BTC ratio underscores how market players are preferring Ethereum over Bitcoin, likely due to its expanding use cases beyond mere store-of-value status.
  • Bullish Price Predictions and ETF Flows: Predictions of bullish Ethereum prices from financial giants like JPMorgan, projecting prices at $8,500 by the end of 2025, contribute to institutional enthusiasm. The introduction and success of spot Ethereum ETFs have also provided institutional capital with easier access.
  • Market Correlation and Risk-on Sentiment: The stable equity markets and increasing risk appetite among institutional investors encourage Ethereum's growth prospects compared to Bitcoin, as these investors seek exposure to higher-growth crypto assets.

In essence, the wave of institutional interest in Ethereum is currently stronger than or at least running parallel to Bitcoin. This trend is likely to persist as long as Ethereum maintains its technological edge and market positioning.

  1. While Bitcoin ETF withdrawals surged past $1.2 billion over the past three days, Ethereum ETFs, on the other hand, recorded persistent inflows, totaling $692 million, a trend that started lately and is notable due to institutional attention towards Ethereum.
  2. Ethereum co-founder Joseph Lubin expressed excitement about SharpLink Gaming, which recently raised $425 million in investments to establish an Ethereum treasury, indicating institutional investors' growing interest in Ethereum.
  3. Analysts view the inverse flow of funds between Bitcoin and Ethereum ETFs as institutional investors selling Bitcoin at peak prices while Ethereum garners institutional attention, suggesting an expanding institutional interest in Ethereum.
  4. The bullish price predictions for Ethereum from financial giants like JPMorgan, projecting prices at $8,500 by the end of the year, contribute to institutional enthusiasm and easy access provided by the successful introduction of spot Ethereum ETFs.
  5. The increasing ETH/BTC ratio and Ethereum's expanding use cases beyond mere store-of-value status, its growing dominance in decentralized finance (DeFi), and ongoing protocol upgrades aimed at boosting scalability and reducing fees are all fostering institutional confidence in Ethereum's long-term viability.

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