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For a long time, Bitcoin reigned supreme over the crypto-asset universe, especially in the realm of exchange-traded funds (ETFs). But today, a turning point is underway. Quietly, methodically, Ethereum is starting to nibble away at market share and capture the attention of institutional investors. A recent report from CoinShares highlights this surprising dynamic: ether no longer just follows, it asserts itself. Behind the numbers, a reality is setting in: Bitcoin’s dominance in crypto ETFs is no longer as obvious.
In Brief
- Ethereum records $990 million inflows in one week, surpassing Bitcoin in growth pace.
- Ethereum funds grew by 19.5% over 12 weeks, compared to 9.8% for those linked to Bitcoin.
- Institutional investors now favor Ethereum for its flexibility and potential uses.
The silent rise of Ethereum in the ETF arena
Long considered the undisputed number two behind Bitcoin, Ethereum is shaking up the hierarchy. And this time, it’s not influencer tweets or a network upgrade lighting up the spotlight, but rather market data. According to CoinShares, Ethereum-backed funds are experiencing unprecedented enthusiasm, proportionally eclipsing those of the titan Bitcoin over the past three months.
With $990 million in inflows just last week, Ethereum enjoys its twelfth consecutive week of positive flows. The result? Its funds now manage $19.6 billion, a growth of 19.5%. Meanwhile, Bitcoin ETFs, which remain substantially higher in absolute value, have only grown by 9.8%, reaching $176 billion. An honorable performance, but now challenged in terms of momentum.
James Butterfill, head of research at CoinShares, sums up the trend bluntly: People prefer Ethereum over Bitcoin. A bold claim, but supported by the numbers. Because while Bitcoin continues to break records, peaking at $122,800, investor fervor seems to be shifting elsewhere, towards an asset seen as more versatile and in full narrative maturity.
Bitcoin, still king… but challenged
Let’s be clear: Bitcoin is not dead. Far from it. As a pioneer and store of value, it continues to dominate the scene with its ETFs representing more than $148 billion in assets. It remains the institutional gateway to the crypto world, and its aura on Wall Street remains intact. Its recent all-time high only confirms its stature.
However, a shiver runs through the lines. While Bitcoin ETFs dominate visibility, savvy investors are already looking beyond the king. Ethereum, with its multiple use cases (smart contracts, DeFi, NFT, tokenization), offers a more sophisticated narrative. Tom Lee, co-founder of Fundstrat and now head of Ethereum treasury via BitMine, no longer hesitates to actively promote it as an investment pillar.
Even in a general crypto growth context, where Solana, XRP, and Algorand shine, the battle is now between two. And in this face-off, Bitcoin seems for the first time… slightly in retreat.
Are ETFs the mirror of a financial transformation?
This change of tone among institutional investors is no accident. ETFs are the thermometer of regulated market appetites. And when these start to partially abandon Bitcoin to reposition on Ethereum, it indicates much more than a simple portfolio rebalancing.
In reality, we may be witnessing the birth of a new balance in crypto finance. Bitcoin retains its place as a digital reserve, but Ethereum, with its dynamic ecosystem and innovation potential, becomes a conviction asset. A logical pivot as markets mature and speculation gives way to more elaborate investment theses.
It would be tempting to see this as a power struggle. But the truth is more nuanced: Ethereum does not seek to replace Bitcoin, it complements it, even emancipates it. In a structuring market, this duality could become a strength rather than a rivalry. It is no coincidence that BlackRock now holds more than 2 million ETH.
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Fascinated by Bitcoin since 2017, Evariste has continuously researched the subject. While his initial interest was in trading, he now actively seeks to understand all advances centered on cryptocurrencies. As an editor, he strives to consistently deliver high-quality work that reflects the state of the sector as a whole.
DISCLAIMER
The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.
