Bitcoin Exchange-Traded Funds Recover While Ethereum Funds Lead the Pack
In a significant shift in the cryptocurrency market, Ethereum Exchange-Traded Funds (ETFs) have been attracting more capital than Bitcoin ETFs in recent weeks. This surge in Ethereum ETF inflows is primarily due to growing institutional demand and a faster accumulation pace of Ethereum by these funds.
The inflows were triggered by President Donald Trump signing an executive order allowing crypto assets in 401(k) retirement plans, which contributed to a total of $1.57 billion worth of inflows during the latter half of the week. Ethereum ETFs captured 77% of these total crypto fund inflows, amounting to a substantial $2.87 billion, while Bitcoin only saw $552 million.
This trend has had a direct impact on total assets under management (AUM) in digital asset funds. Ethereum’s year-to-date inflows reached a record $11.09 billion, representing 29% of its total AUM, compared to just 11.6% for Bitcoin. The overall crypto fund AUM hit $244 billion as of mid-August 2025, boosted by Ethereum’s stronger capital accumulation.
Institutional adoption is highlighted by ETFs like iShares contributing $3.2 billion to Ethereum inflows, signaling robust investor confidence despite Ethereum’s price decline of about 6% during the period. Ethereum ETFs increased their holdings from just over 3.5 million ETH in February 2025 to 6.52 million ETH by mid-August 2025—more than 5% of Ethereum’s circulating supply. Meanwhile, Bitcoin ETFs hold about 6.38% of the total Bitcoin supply.
However, there have been short-term fluctuations, such as recent $197 million spot Ether ETF outflows, connected to unstaking activity and investor shifts. These outflows are relatively small compared to the large inflow streaks over the prior weeks and do not negate the overall trend of rising Ethereum ETF demand.
The bullish momentum for Ethereum is backed by some of the strongest Ethereum usage in years. Ethereum is considered the backbone for areas like DeFi, tokenized assets, and staking-sectors. According to CoinGecko, Bitcoin is currently trading at $120,104, up 1.3% in the last 24 hours, while Ethereum has jumped 21% to reach $4,300, a level not seen since 2021.
Illia Otychenko, lead analyst at CEX.IO, mentioned a local FOMO (Fear of Missing Out) that is developing amid reestablished bullish momentum surrounding Ethereum. Trading volumes across digital asset ETPs declined 23% from the previous month, pointing to typical summer market patterns. Despite this, the strong Ethereum usage in recent times has resulted in active addresses reaching the highest level since early 2021.
In summary, the higher Ethereum ETF inflows reflect stronger institutional adoption, faster supply accumulation, and increased investor preference for Ethereum as a digital asset fund, impacting total assets under management more significantly than Bitcoin ETFs in recent months.
| Aspect | Ethereum ETFs | Bitcoin ETFs | |-------------------------------|---------------------------------------------|------------------------------------------| | Recent weekly inflows | $2.87 billion (77% of crypto fund inflows) | $552 million | | YTD inflows | $11.09 billion (29% of AUM) | Less than 11.6% of AUM | | Holdings as % of supply | 5.08% (up from ~3.5M ETH to 6.52M ETH) | 6.38% of BTC supply | | Impact on total AUM | Boosted total crypto AUM to $244 billion | Stable but slower growth | | Institutional contributions | $3.2 billion (e.g., iShares) | Lower relative inflows |
[1] Source: CoinDesk [2] Source: CoinShares [3] Source: CoinGecko [4] Source: Bloomberg
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