Spot Ethereum ETFs recorded a second consecutive week of net outflows as investor demand cooled, while spot Bitcoin ETFs regained momentum with renewed institutional interest.Key TakeawaysEther ETFs posted $243.9 million in outflows this week, following last week’s $311 million in redemptions.Bitcoin ETFs recorded $446 million in inflows, signaling renewed institutional confidence.BlackRock’s ETHA led Ether outflows with $100.99 million, while IBIT and FBTC topped Bitcoin inflows.Analysts point to a rotation from Ethereum to Bitcoin, driven by the “digital gold” narrative and macro expectations of rate cuts.Ether ETFs Log $243.9M in Outflows Amid Cooling DemandSpot Ethereum ETFs continued to see withdrawals for a second week, with total outflows reaching $243.9 million in the seven days ending Friday, according to SoSoValue.The prior week saw even heavier redemptions of $311 million, reflecting a cooling in investor appetite after months of strong inflows.Cumulative inflows across all Ether spot ETFs now stand at $14.35 billion, with total net assets valued at $26.39 billion — representing about 5.55% of Ethereum’s total market capitalization.On Friday alone, Ether ETFs saw $93.6 million in withdrawals, led by BlackRock’s ETHA ETF, which posted $100.99 million in redemptions.By contrast, Grayscale’s ETHE and Bitwise’s ETHW recorded modest inflows, signaling mixed investor behavior across issuers.Analysts say the pullback underscores waning institutional demand following a strong summer run and a general slowdown in on-chain activity across Ethereum-based assets.Bitcoin ETFs Attract $446M as Institutional Demand ReboundsIn sharp contrast, spot Bitcoin ETFs experienced $446 million in net inflows over the same period, reflecting growing confidence among institutional investors.The products added $90.6 million on Friday, bringing cumulative inflows to $61.98 billion and total assets to $149.96 billion, equivalent to 6.78% of Bitcoin’s market cap.BlackRock’s iShares Bitcoin Trust (IBIT) led the pack with $32.68 million in daily inflows, followed closely by Fidelity’s FBTC, which added $57.92 million.IBIT remains the market leader with $89.17 billion in AUM, while FBTC holds $22.84 billion.Market Rotation Toward Bitcoin StrengthensAccording to Vincent Liu, Chief Investment Officer at Kronos Research, ETF flows reveal a clear rotation from Ethereum to Bitcoin as investors favor assets with stronger store-of-value narratives.“Institutional flows are telling us that Bitcoin’s ‘digital gold’ thesis is gaining traction again,” Liu said. “Investors are positioning for resilience amid global uncertainty and expectations of monetary easing.”Liu noted that Ethereum’s outflows highlight a temporary cooling of demand, with investors awaiting new network or regulatory catalysts before re-entering.BTC Flows Likely to Stay StrongLooking ahead, analysts expect Bitcoin ETF inflows to remain robust in the near term, supported by favorable macro signals and potential interest rate cuts.Meanwhile, Ethereum and other altcoins could see renewed momentum only if network activity rises or new catalysts emerge, such as staking reforms or layer-2 growth triggers.
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