• Ethereum ETFs saw 154,000 ETH in weekly inflows, a fivefold surge over the recent average.
• A single-day record of 77,000 ETH flowed into spot ETFs on June 11.
• Institutional investors are rotating from BTC to ETH, attracted by staking yields and broader utility.
• Bitcoin ETFs recorded only 7,800 BTC in inflows, reflecting stagnation and growing volatility.

Ethereum is emerging as the dominant force in crypto ETF inflows this week, signaling a possible shift in institutional sentiment toward the second-largest cryptocurrency by market cap. According to on-chain analytics firm Glassnode, spot ETH exchange-traded funds (ETFs) saw a substantial 154,000 ETH in net inflows over the past week, marking a fivefold increase over its recent weekly average.

The numbers sharply contrast with Bitcoin’s more modest performance, which saw just 7,800 BTC in total inflows during the same period. The highlight came on June 11, when a record-breaking 77,000 ETH flowed into Ethereum spot ETFs in a single day, the highest daily total for ETH so far this month. This unprecedented influx has sparked renewed discussions about Ethereum’s evolving role in institutional portfolios, especially as it inches closer to the critical $3,000 price level.

Market observers attribute this surge in ETH ETF activity to a combination of technical and macro factors. Ethereum’s improving fundamentals, ranging from its expanding role in decentralized finance (DeFi) and staking to its growing developer ecosystem, are strengthening its case as a multi-functional crypto asset rather than just a speculative play. In particular, the recent buzz around ETH staking yields and ongoing Layer 2 scaling advancements may be contributing to the inflow momentum.

Meanwhile, Bitcoin ETFs, while still considered the cornerstone of institutional crypto adoption, have seen relatively flat activity. The 7,800 BTC in net inflows this week represents only a slight increase over the recent norm and pales in comparison to the 7,900 BTC that entered ETFs in a single day on May 23. Adding to the uncertainty, Bitcoin ETF flows have been increasingly volatile, with early June witnessing back-to-back sessions of sharp redemptions and inconsistent investor participation.

The widening gap in ETF inflows between Ethereum and Bitcoin may reflect a growing appetite for assets with broader utility and potential upside.

Analysts highlight several factors behind the growing divergence in ETF flows between Ethereum and Bitcoin. Institutions appear to be rotating capital from BTC to ETH in search of higher upside, especially as Ethereum’s price gains momentum. Speculation around new Ethereum ETF features, like staking-enabled products, is also boosting investor interest.

More broadly, Ethereum’s versatile use cases across DeFi, smart contracts, and NFTs are positioning it as a more dynamic asset compared to Bitcoin’s traditional store-of-value appeal, prompting a shift in institutional allocation strategies.

Although Bitcoin remains the dominant digital asset in terms of total ETF exposure, Ethereum is gaining ground. The recent uptick in institutional interest could mark the early stages of a broader reallocation trend in the crypto investment landscape.

If Ethereum’s ETF momentum persists, it could drive further price appreciation and solidify ETH’s position as not just a runner-up to Bitcoin, but as a leading force in the next phase of institutional crypto adoption.

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