Simply put
- Bitcoin reached a record high this week, while Ethereum had a notable increase in early May.
- Price surges for Bitcoin often occur when investors dive into exchange sales funds.
- The Ethereum ETF has gained some investments, but demand hasn’t matched that of Bitcoin funds.
On Thursday, Bitcoin and Ethereum funds on the exchange saw over $1 billion in new investments, marking the biggest influx in five months. This reflects a growing interest in crypto-focused products over the past two weeks.
BlackRock’s iShares Bitcoin Trust (IBIT) was a significant contributor, bringing in a net inflow of $877 million. This marked one of the most significant days for the fund, highlighting the recent upward trend, according to data from UK asset manager Farside. Overall, the Bitcoin Fund attracted $935 million.
“The momentum, especially at IBIT, is impressive. It hasn’t experienced any outflow since Bitcoin’s recent low,” said a spokesperson from ETF.com. They continued, “The rise in Bitcoin’s price, reaching new highs, shows a strong connection between inflow and price, and we’re hopeful this trend will persist.”
Bitcoin’s price surged over 48% since dropping below $75,000 in early April. Part of this is attributed to reduced tensions from President Trump’s trade policies and an inflation report that came in higher than expected. Investors increasingly view BTC as a safe asset amid ongoing economic instability.
IBIT recorded over $1.9 billion in assets in just the first four days of this week. Interestingly, this isn’t the first time the fund has hit over $1 billion in a week, showing it has gained significant traction since its launch in January 2024, earning close to $41 billion in net inflows.
According to Crypto Price Data Firm Coingecko, Bitcoin reached a new high of $111,814 this week.
Ethereum ETFs saw inflows exceeding $110 million on Thursday, with Grayscale Ethereum Trust (ETHE) and Fidelity Ethereum Trust (FETH) picking up more than $40 million each.
Despite these inflows, Ethereum’s recent performance has lagged behind Bitcoin. Currently, Ethereum trades at $2,565, down 3.5% from Thursday. However, it has risen over 46% in the last month.
BlackRock’s iShares Ethereum Trust (ETHA) reported net inflows of over $4.3 billion. Currently, eight funds have net inflows exceeding $2.7 billion, with Grayscale’s ETHE accounting for approximately $4.3 billion in outflows. Unlike its competitors, this fund operates as a closed trust, leading to higher fees.
“While the Ethereum ETF hasn’t set the world on fire, it’s still performing decently,” remarked James Sefert, a research analyst at Bloomberg ETF. “The inflows are solid, but the underlying price pulls the asset level down.”
