In the midst of this, an analyst x.com/AdrianoFeria/status/1821036811323334900″ target=”_blank” rel=”noopener nofollow”>noticed While the focus has been on bitcoin, considering its role in cryptocurrencies as the primary currency and base currency for most cryptocurrency pairs, there is movement in ethereum.
Sharing spot ETF flows for the past three days, the analyst noted that there appears to be a rapid shift among institutions as they move money from the world’s most valuable currency to eth.
<img decoding="async" class="size-full wp-image-314043" src="https://technicalterrence.com/wp-content/uploads/2024/08/Institutions-abandoning-Bitcoin-for-Ethereum-Will-this-trend-continue.jpg" alt="Capital inflows into ethereum and bitcoin spot ETFs | Source: @AdrianoFeria via x” width=”1024″ height=”401″ srcset=”https://technicalterrence.com/wp-content/uploads/2024/08/Institutions-abandoning-Bitcoin-for-Ethereum-Will-this-trend-continue.jpg?w=1868 1868w, https://technicalterrence.com/wp-content/uploads/2024/08/Institutions-abandoning-Bitcoin-for-Ethereum-Will-this-trend-continue.jpg?w=640 640w, https://technicalterrence.com/wp-content/uploads/2024/08/Institutions-abandoning-Bitcoin-for-Ethereum-Will-this-trend-continue.jpg?w=768 768w, https://technicalterrence.com/wp-content/uploads/2024/08/Institutions-abandoning-Bitcoin-for-Ethereum-Will-this-trend-continue.jpg?w=980 980w, https://technicalterrence.com/wp-content/uploads/2024/08/Institutions-abandoning-Bitcoin-for-Ethereum-Will-this-trend-continue.jpg?w=1536 1536w, https://technicalterrence.com/wp-content/uploads/2024/08/Institutions-abandoning-Bitcoin-for-Ethereum-Will-this-trend-continue.jpg?w=750 750w, https://technicalterrence.com/wp-content/uploads/2024/08/Institutions-abandoning-Bitcoin-for-Ethereum-Will-this-trend-continue.jpg?w=1140 1140w” sizes=”(max-width: 1000px) 100vw, 1000px” data-recalc-dims=”1″/>Capital inflows into ethereum and bitcoin spot ETFs | Source: @AdrianoFeria via x
The trend, which is shown by the recent massive capital inflows into ethereum ETFs on the spot market amid declining capital flows into its bitcoin counterpart, has generated optimism. There is a lot of confidence that eth can absorb the deluge of selling pressure and overcome local resistances, mainly at $2,800 and $3,300.
To put the numbers into perspective, BlackRock's spot ethereum ETF product, iShares ethereum Trust (ETHA), has been attracting capital and is the larger said product per asset under management.
Since its launch, ETHA has attracted nearly $870 million in inflows, according to Far Side.
Interestingly, when prices suddenly crashed on August 5, investors purchased $50 million worth of eth via ETHA. Another $109 million worth of these shares were purchased on August 6.
According to Farside trading data, on August 6, all ethereum spot ETFs saw inflows of over $98 million, with ETHA leading the way with $109 million. Fidelity’s FETH saw net inflows of $22.5 million, while Grayscale’s ETHE saw outflows of $39.7 million.
Meanwhile, according to Farside, all bitcoin ETFs are in the red aware outflows of $148 million on August 6. Interestingly, institutions seemed to have favored the ethereum spot ETFs offered by BlackRock because IBIT, the bitcoin spot ETF from the same asset manager, did not see any inflows.
In contrast, there was a steady outflow of funds from Fidelity’s bitcoin spot ETF, FBTC, which saw $64 million worth of shares redeemed. Grayscale’s GBTC also saw outflows of $32 million.
x/OBpeLuLL/” rel=”nofollow noopener” target=”_blank”>x/OBpeLuLL/” alt=”bitcoin shows an uptrend against ethereum on the daily chart | Source: ETHBTC via Binance, TradingView” width=”1233″ height=”590″/>bitcoin shows an upward trend against ethereum on the daily chart | Source: x/OBpeLuLL/” target=”_blank” rel=”noopener nofollow”>ETHBTC via Binance, TradingView
The shift in demand explains why eth could reverse losses against btc in the coming days. bitcoin has the upper hand and is in a bullish breakout formation compared to ethereum.
In any case, btc has reached multi-year highs against eth, and if inflows point to demand, this trend could continue.