2.9B flows into Ethereum ETFs – Is ETH’s dip a buying signal?
Key Takeaways
Ethereum leads the market: ETFs and leveraged flows push ETH dominance increased, signaling potential 2025 upside.
Ethereum [ETH] retains flexing whereas Bitcoin [BTC] cools off.
Notably, BTC hit $124k however is posting pink month-to-month returns, whereas ETH holds +16%, testing resistance and absorbing capital flows. This pushed ETH.D from 8% to 14% since Could, whereas BTC.D slipped 60% to 59%.
On-chain and product flows again it up. Ether ETFs drove $2.9 billion of final week’s $3.75 billion crypto ETP inflows, pushing ETH towards $4.7k, whereas BTC solely grabbed $552 million regardless of its all-time excessive.
Supply: CoinShares
And it doesn’t cease there.
Spot ETH ETFs went beast mode, hitting $17 billion in weekly quantity as a part of a $40 billion mixed BTC and ETH ETF grind, signaling heavy liquidity rotation into Ethereum.
Mainly, the market’s telling us ETH is the capital magnet proper now, with each ETFs and spot flows backing the dominance story.
In order that 4% weekly pullback? A minor shakeout in a broader capital rotation into Ethereum?
Ethereum within the driver’s seat
Since Could, ETH has ripped 100%+, whereas BTC is caught round +20%, displaying Ethereum’s capital dominance on the macro body. And now, speculative flows are piling in.
In simply the primary two weeks of the month, ETH pulled almost $10 billion in leverage, with Open Curiosity hitting a document $65 billion, whereas BTC barely moved the needle with a $1 billion influx.
Which means derivatives liquidity is rotating arduous into Ethereum, not simply spot flows. The payoff? ETH/BTC is flashing its first back-to-back MoM inexperienced since 2022, with the ratio up 70%+ since Could.
Supply: TradingView (ETH/BTC)
Why does it matter?
In a risk-on setup, cash’s clearly chasing Ethereum. Each spot and leveraged flows are stacking up on ETH, leaving BTC within the mud on weekly and monthly returns.
Consequently, that makes Ethereum’s latest 4% dip extra of a shakeout than a pattern reversal, providing what may very well be a main entry level for upside in 2025.
