CoinMarketCap: Read what our contributors have to say. This content is provided by the community. DYOR!
Bitcoin (BTC) ETF Beating Ethereum (ETH) by $16,700,000,000
Market Musing-g

Bitcoin (BTC) ETF Beating Ethereum (ETH) by $16,700,000,000

U_Today
By U_Today
4 months ago
2 mins read
Bitcoin (BTC) ETF Beating Ethereum (ETH) by $16,700,000,000
Cover image via U.Today
There is a clear performance difference between Bitcoin and Ethereum ETFs based on recent data. Since their launch, Ethereum ETFs have experienced a net outflow of 189,200 ETH, while Bitcoin ETFs have experienced a sizable net inflow of 305,000 BTC, marking a massive contrast between the two assets. 
With Ethereum still facing difficulties, Bitcoin has gained roughly $16.7 billion over Ethereum, indicating growing institutional interest in the former. The divergence in ETF flows points to a worrying pattern for Ethereum. It appears that institutions are losing interest in ETH, as many have sold their holdings covertly in recent months.

Ethereum's market performance has been directly impacted by this ongoing dumping, as seen by a discernible decline in transaction volume. Although Ethereum's blockchain has historically seen a lot of activity, its adoption and usefulness may be under pressure due to waning institutional confidence. 

Source: Dune

Ethereum's switch to proof of stake (PoS) may be one factor contributing to this decline in interest. Although PoS was expected to improve scalability and efficiency, some institutional players do not seem to be convinced of its long-term advantages. Another factor contributing to investor reluctance may be the ecosystem's complexity, which includes layer-2 solutions and frequent updates.

Conversely, more conservative and risk-averse institutional players may be drawn to Bitcoin due to its established status. Ethereum's 189,000 ETH outflow illustrates the fact that in spite of the technological advancements that ETH provides, institutions still prefer Bitcoin as their asset of choice.

Ethereum needs to address these issues if it wants to rebuild market strength and institutional confidence, as indicated by the widening gap in net ETF flows. Ethereum may find it difficult to hold onto its position on the larger cryptocurrency market if the dumping of ETH persists and institutions continue to lean more toward BTC.

0 likes
|

Other articles published on Sep 16, 2024

Market Musing-g

Flare introduces FTSOv2 to boost decentralized data security

FTSOv2 sets a New Standard for Real-time, Reliable, and Scalable Decentralized Data
By The Crypto Times
4 months ago
3 mins read
Market Musing-g

What is SNAXchain by Synthetix?

SNAXchain benefits from Optimism’s optimistic rollups, which reduce transaction costs and improve scalability.
By BSCN
4 months ago
3 mins read
Market Musing-g

Expect altcoins to thrive under Trump presidency, analyst predicts

Alex Thorn, head research analyst at crypto asset manager Galaxy, believes altcoins would benefit more from a Donald Trump election victory than Bitcoin because of a potential shift in the regulato...
By Cryptopolitan_News
4 months ago
5 mins read
Market Musing-g

Vitalik Buterin: Lower Layer 2 Fees Pave the Way for ‘High-Value DeFi’ on Ethereum

Vitalik Buterin: Lower Layer 2 Fees Enable ‘High-Value DeFi’ on Ethereum Ethereum founder Vitalik Buterin has emphasized that the recent reduction in Layer 2 fees is a major milestone for decentral...
By ItsBitcoinWorld
4 months ago
4 mins read
Market Musing-g

Top 3 Cryptos Under $0.20 Ready to Surge 100x in 2024

As the cryptocurrency market prepares for its next major move, many investors are looking for hidden gems with the potential to deliver 100x returns. While Bitcoin (BTC) remains the most well-known...
By Bitcoin Sistemi EN
4 months ago
3 mins read
Market Musing-g

Ethereum’s Bullish Forecast: Analysts Anticipate a ETH Staggering 48% Rally—Invest Now?

Ethereum has decreased by 7.95% in the last month, currently trading at $2,410 amid market downturns. Analysts predict a potential 48% surge in Ethereum’s value to $3,550, mirroring Bitcoin’s recen...
By ETHNews
4 months ago
5 mins read

Join the thousands already learning crypto!

Join our free newsletter for daily crypto updates!