As you can see from the daily chart performance, Bitcoin, Ethereum, and other major altcoins are not immune from downward pressure either.
Bitcoin and Ethereum, despite being the most liquid currencies, still posted double-digit losses over the past trading week.
As the stock price moves upward, traders carefully monitor how the price will react in the immediate liquidation zone.
Will Institutions Choose Ethereum Over Bitcoin?
One of these analysts said I noticed While the focus is on Bitcoin, there is also movement on Ethereum, given its role as the top coin in the cryptocurrency market and the base currency for most cryptocurrency pairs.
The analyst shared the spot ETF flows over the past three days, noting that there appears to have been a dramatic shift as institutions move funds from the world’s most valuable coin to ETH.
The recent trend of massive inflows into spot Ethereum ETFs, as capital flows into Bitcoin counterparts have dried up, has led to optimism. There is growing confidence that ETH will absorb the flood of selling pressure and break out primarily at the $2,800 and $3,300 local resistance levels.
To put the numbers into perspective, BlackRock’s spot Ethereum ETF product, the iShares Ethereum Trust (ETHA), is attracting capital. The biggest These products are categorized by operating assets.
ETHA has attracted nearly $870 million in inflows since its launch. Parside.
Interestingly, when the price crashed on August 5, investors bought $50 million worth of ETH through ETHA. On August 6, another $109 million of these shares were bought.
Looking at trading data from Farside, all spot Ethereum ETFs saw inflows of over $98 million on August 6, with ETHA leading the pack with $109 million. Fidelity’s FETH saw net inflows of $22.5 million, while Grayscale’s ETHE saw outflows of $39.7 million.
Spot Bitcoin ETFs See Outflows, But BTC Dominates
Meanwhile, according to Farside, all spot Bitcoin ETFs saw outflows of $148 million on August 6. Interestingly, institutions appear to be favoring the spot Ethereum ETF offered by BlackRock, as the same asset manager’s spot Bitcoin ETF, IBIT, did not see inflows.
Instead, there was steady outflow from Fidelity’s spot Bitcoin ETF, FBTC, with $64 million in shares being redeemed. Grayscale’s GBTC also saw $32 million in outflows.
The change in demand explains why ETH could reverse losses against BTC in the coming days. Bitcoin is gaining the upper hand and is forming a bullish breakout pattern against Ethereum.
In fact, BTC is at a multi-year high versus ETH, and if inflows indicate demand, this trend is likely to continue.
Feature image from Canva, chart from TradingView