On Tuesday, spot Bitcoin exchange-traded funds (ETFs) showed off their financial strength by bringing in a net $332.7 million in new money. Their Ethereum counterparts were left in the dust. According to SoSoValue data, Fidelity's FBTC brought in the most money, $132.7 million, and BlackRock's IBIT wasn't far behind, bringing in $72.8 million. Grayscale, Ark & 21Shares, Bitwise, VanEck, and Invesco are some of the other players who joined the Bitcoin party and made some good money.
Ethereum ETFs Lose Value
Ethereum ETFs, on the other hand, were left crying in the corner with $135.3 million in net outflows. Fidelity's FETH lost the most money, with $99.2 million leaving the stage. Bitwise's ETHW also lost money, saying goodbye to $24.2 million.
Why the move to Bitcoin?
Nick Ruck, the director of LVRG Research, added some fancy analysis:
"The shift of ETF inflows from ETH to BTC suggests that institutional investors may be rebalancing their portfolios to take advantage of Bitcoin's perceived stability in the face of macroeconomic uncertainties."
What does that mean? Big money is betting that Bitcoin will be the steady ship in rough economic waters.
Ethereum's August Glory
But we shouldn't give up on Ethereum just yet. August was its time to shine, with $3.87 billion going into Ethereum ETFs and $751 million going out of Bitcoin ETFs. Analysts called it a "rotational shift" toward Ethereum because it makes money, has clearer rules, and companies are filling their treasuries with digital assets.
What will Happen Next?
Ruck thinks that this Bitcoin bounce could keep its price around $108k, which would ease the pressure to sell in the short term. But he still loves Ethereum, saying that its "stronger yield prospects and Digital Asset Treasuries growth" might keep it in the spotlight until the end of the year.
Jordan V.
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