Institutions Dumping Bitcoin For Ethereum: Will This Trend Continue? Trending Global News

Bitcoin, Ethereum, and other top altcoins are not immune to bearish pressure, as evident from their daily chart performance.

Bitcoin and Ethereum, despite being the most liquid, are down by double digits over the past trading week.

As the bulls move higher, traders closely monitor how prices will react in the immediate liquidation zones.

Are institutions choosing Ethereum over Bitcoin?

Meanwhile, an analyst noticed While the focus has been on Bitcoin, Ethereum is making waves, given its role in crypto as the top coin and the base currency of most crypto pairs.

Sharing the spot ETF flows of the last three days, the analyst said that a bullish shift is visible among institutions as they are moving money from the world’s most valuable coin to ETH.

The trend shown by the recent massive inflows into the spot Ethereum ETF amid the drying up of capital flows into the Bitcoin counterpart has fueled optimism. Confidence is high that ETH can withstand the flood of selling pressure and break local resistances, primarily at $2,800 and $3,300.

To put the numbers into perspective, BlackRock’s spot Ethereum ETF product, the iShares Ethereum Trust (ETHA), is attracting capital and is the largest Ethereum ETF product. Largest Such products by assets under management.

According to the report, ETHA has attracted investments worth around $870 million since its launch. on the far side,

Interestingly, when prices fell sharply on August 5, investors purchased $50 million worth of ETH via ETHA. Another $109 million of these stocks were purchased on August 6.

Looking at Farside’s trading data, all spot Ethereum ETFs saw over $98 million inflows on August 6, with ETHA leading the way with $109 million. Fidelity’s FETH saw net inflows of $22.5 million, while Grayscale’s ETHE saw $39.7 million.

Spot Bitcoin ETF sees withdrawals, but BTC has the upper hand

Meanwhile, based on Farside, all spot bitcoin ETFs Posted Interestingly, institutions preferred the spot Ethereum ETF offered by BlackRock, as there were no investments in the spot Bitcoin ETF IBIT offered by the same asset manager.

Instead, there were steady withdrawals from Fidelity’s spot bitcoin ETF, FBTC, with $64 million worth of shares redeemed. Grayscale’s GBTC also saw $32 million worth of withdrawals.

The shift in demand explains why ETH could trim its losses against BTC in the coming days. Bitcoin has the upper hand and is in a bullish breakout formation compared to Ethereum.

If anything, BTC is at multi-year highs against ETH, and if inflows are pointing to demand, this trend could continue.

Feature image from Canva, chart from TradingView