Ether (ETH) has once again captured the attention of institutional investors, breaking a two-day red streak. Meanwhile, Bitcoin (BTC)-based financial products are failing to recover and continue to see outflows.
Yesterday, August 5, ETH exchange-traded funds (ETFs) in the United States raised $73 million. Since their market launch, these financial instruments have accumulated more than $9.1 billion.
Inflows and outflows in Ether ETFs. Source: SosoValue.
On the other hand, Bitcoin ETFs failed to reverse the negative trend and reported outflows of $196 million, marking four consecutive days of losses, something that hadn't happened since the first week of April.
It should be noted that since their market debut, these funds have accumulated more than $56.6 billion.
BTC ETFs have been in the red for four days. Source: SosoValue.
The strong performance of ether ETFs is largely due to investors believing this asset has greater upside potential in this market cycle. This may also be related to the signs of an altseason in the making. The market is currently undergoing a capital rotation cycle that begins with a strong push in BTC, driving its price to new all-time highs. Once BTC stabilizes at high levels, money flows into the Ethereum coin and subsequently into smaller-cap projects. For this momentum to continue, it will be essential for global macroeconomic conditions to improve, which will foster greater risk appetite.
