Bitcoin to Ethereum ETFs rotation is gaining momentum as investor interest moves from the top crypto to Ethereum.
On Monday, spot Bitcoin ETFs saw a sharp turn with $131 million in net outflows, ending a 12-day inflow streak. The shift comes while Ethereum ETFs extended their positive run to 12 days, gathering $296 million in inflows. Analysts view this as a sign that institutional capital is eyeing Ethereum as the next opportunity after Bitcoin’s strong rally earlier this year.
Ark & 21Shares’ ARKB led the outflows from Bitcoin ETFs with $77 million. Major players like Grayscale, Bitwise, VanEck, and Fidelity also saw negative flows. BlackRock’s IBIT, the largest spot Bitcoin ETF, reported zero activity. This sudden halt in Bitcoin ETF demand suggests investor caution or profit-taking after significant recent gains.
Meanwhile, Ethereum is seeing its best ETF performance since launching. Fidelity’s FETH brought in $127 million, while BlackRock’s ETHA saw $102 million in net inflows. Altogether, spot Ether ETFs have attracted $3.53 billion over the last 12 days.
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Ethereum ETFs see inflows as Bitcoin cools off
Min Jung, analyst at Presto Research, says this Bitcoin to Ethereum ETFs rotation isn’t new. According to Jung, the shift from BTC to ETH often marks the start of an altcoin season. Ethereum becomes the go-to option for investors looking to catch the next wave.
“Bitcoin has already surged. Those who feel they missed the BTC move now turn to Ethereum,” Jung explains. “Bitcoin dominance dropped 5% over the past week, another sign that capital is rotating.”
This market dynamic reflects a broader risk appetite change. When Bitcoin consolidates, ETH tends to rise, and other altcoins follow. If this trend continues, the crypto market could soon see another round of altcoin momentum.
ETFs rotation could lead to a wider altcoin rally
Institutional capital has fueled much of the current crypto market rally. The dominance of large-cap assets like Bitcoin and Ethereum suggests investors still favor safer, more liquid tokens. Whether this capital will flow into smaller altcoins remains uncertain.
Still, the Bitcoin to Ethereum ETFs rotation may act as a key signal. If ETH maintains its momentum, more investors could follow the trend, pushing altcoins higher. For now, Ethereum is at the center of attention, and Bitcoin’s rangebound movement adds weight to the shift.
The next few weeks could decide whether this shift expands beyond Ethereum. Investors are watching for confirmation through sustained ETH strength and increased altcoin activity.