- Bitcoin ETFs recorded $208.4M inflows on March 19, marking three consecutive days of gains, while Ethereum ETFs saw $55.17M outflows.
- Institutional investors favor Bitcoin ETFs as Ethereum struggles with price drops, 11-day outflows, and regulatory uncertainty.
- BlackRock’s Ethereum ETF lost 21,194 ETH ($43.05M), while whales leveraged ETH for liquidity instead of long-term holdings.
Bitcoin exchange-traded funds (ETFs) have recorded notable inflows, while Ethereum ETFs continue to face persistent outflows. Data from Lookonchain shows Bitcoin spot ETFs saw net inflows of 2,472 BTC ($208.4 million) on March 19.
In contrast, Ethereum spot ETFs recorded net outflows of 27,163 ETH ($55.17 million) on the same day. This trend indicates differing investor sentiment between the two leading digital assets.
Bitcoin ETFs Inflows and Ethereum Outflows
Bitcoin ETFs in the U.S. have had three consecutive days of net inflows, the longest streak since February. According to SoSoValue, total daily net inflows reached $209 million on March 19, continuing a recent recovery trend.
Institutional investors, including BlackRock and Fidelity, have increased their Bitcoin ETF holdings, strengthening Bitcoin’s appeal. Ethereum ETFs, on the other hand, have faced continuous outflows for 11 straight days.
On March 19, they recorded a total net outflow of $11.75 million. BlackRock’s Ethereum ETF alone saw a reduction of 21,194 ETH ($43.05 million). The ongoing capital outlook indicates diminishing investor confidence in Ethereum-based investment products.
Reasons Behind Ethereum ETF Outflows
Ethereum’s weak price performance has contributed to declining interest in its ETFs. Down by over 24% in the past month, Ethereum struggles to break key resistance levels, making it less attractive for institutional investors.
Additionally, regulatory uncertainty has increased, with the U.S. Securities and Exchange Commission delaying decisions on spot Ethereum ETF approvals. The ongoing debate over Ethereum’s classification as a security or commodity further complicates the market outlook.
Institutional investors appear to be shifting capital toward Bitcoin ETFs, capitalizing on its stronger market positioning. Data from Spot On Chain shows that three whales recently withdrew 14,217 ETH ($28.95 million) from Binance.
They then used the funds to borrow $12 million in USDT on Aave before depositing stablecoins back onto Binance and OKX. This movement suggests investors are leveraging Ethereum holdings for liquidity rather than long-term accumulation.
Institutional Confidence in Bitcoin ETFs Grows
While Ethereum ETFs struggle, Bitcoin ETFs continue to attract attention. BlackRock and Fidelity have expanded their Bitcoin ETF portfolios, supporting Bitcoin’s standing as a preferred institutional asset.
U.S. spot Bitcoin ETFs have had steady inflows after five weeks of net outflows, indicating renewed investor confidence. Meanwhile, 21Shares has announced the liquidation of two Ethereum futures ETFs due to declining demand.
This move further shows Ethereum’s current struggle to attract institutional capital. Despite regulatory uncertainty, Ethereum’s growing DeFi adoption and upcoming network upgrades may help reignite interest in its ETFs.
