Ethereum and Bitcoin ETFs are stealing the spotlight, with weeks of strong inflows indicating a clear increase in investor appetite. Institutional players are jumping in, and retail investors are diversifying their bets, pushing the sector into the spotlight.
On top of this, spot Bitcoin ETFs had a 10-day string of inflows, generating $223 million on December 11 alone. Fidelity’s Bitcoin ETF (FBTC) took on much of the burden, dropping $122 million on Bitcoin .cwp-coin-chart svg path { stroke: ; Stroke width: ; }
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Bitcoin ETFs are riding a steady momentum
iShares Bitcoin Trust (IBIT) has emerged as the dominant player, managing $51.1 billion in assets. Fidelity’s FBTC is closely followed, with $20 billion under management. Both ETFs have posted strong growth of 138% since February, far outperforming the broader market index.
“We believe many advisors and investors use Bitcoin ETFs in a small portion of their portfolios, leveraging them for risk capacity,” said Todd Rosenbluth, head of research at TMX VettaFi.
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Ethereum ETFs Join the Rally
Not to be outdone, Ethereum-focused ETFs have enjoyed inflows of their own, with 13 straight days of positive net inflows. During this period, $1.95 billion flowed into Ethereum ETFs, bringing their net assets to $13.18 billion.
Blackrock’s Ethereum ETF (ETHA) came out on top on December 11, bringing in $74.1 million. These consistent flows demonstrate the growing institutional acceptance of Ethereum as a primary asset class alongside Bitcoin. Ethereum ETFs now represent 2.86% of the cryptocurrency’s global market cap, reinforcing its growing market importance.
The differences between spot and futures-based ETFs remain crucial to this market shift. Spot ETFs, favored for their direct tracking of cryptocurrency prices, have delivered higher returns, with top funds such as FBTC and IBIT up 138% since February.
Meanwhile, futures ETFs like BITO from ProShares are generating an eye-catching 52.3% return thanks to tax tricks, but there’s a slight hitch with their two-year performance stalling at a 28% ROI, making spot ETFs look like the choice. Smarter in the long run. Spaces.
“Futures-based ETFs were initially the go-to option, but investor preference has shifted toward spot ETFs, which track actual market performance better,” Rosenbluth added.
Market implications and increasing reliance on Bitcoin ETFs
Bitcoin and Ethereum ETFs have generated more than $6 billion in recent weeks, changing the trend in the cryptocurrency market and capturing institutional focus. These funds are no longer just about diversification, they are developing into strong revenue streams. Take WisdomTree’s BTCW ETF, which generated a staggering 95% of the company’s revenue, cementing ETFs as the go-to solution for asset managers looking to thrive.
The continued growth in ETF flows for Bitcoin and Ethereum underscores their mature role in global financial systems. Investors are watching whether these trends translate into sustained price increases and broader adoption in major portfolios.
All eyes are on whether these inflows will lead to further innovation in this fast-growing investment category.
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