Bitcoin Exchange-Traded Funds recovered last week with a $260 million inflow after a second consecutive week of outflow, but still lacking Ethereum The fund's $268 million performance as a digital asset product totaled $572 million per week.
The influx came after weathering a critical early turbulence that saw the flow from $1 billion in funds, according to Farside investors.
But when President Donald Trump signed an executive order allowing crypto assets in his 401(k) retirement plan, it caused a $1.57 billion influx later in the week, according to Coinshares of Crypto Asset Manager.
Policy changes appear to drive the institutional desire for crypto exposure through regulated investment instruments.
Coinex's regional director Mal Zane said Decryption Many large investors see Ethereum as more than just a risky transaction in the crypto market.
“It is also the backbone of areas such as defi, tokenized assets, staking, and more, a sector that is paying more attention as a traditional financial experiment using blockchain,” he said.
According to Research James Butterfill at Coinshares, the Ethereum fund has accumulated $8.2 billion in flow this year, setting a new record as its managed assets rose to $32.6 billion.
Bitcoin products have recovered from recent weaknesses, but have followed Ethereum rivals with weekly performances.
“ETH's market capitalization is still only one-fifth of BTC, so the needle is far less in the institutional and corporate finance ministry capital to move,” Singapore-based QCP Capital said in a memo on Monday.
QCP Capital said that the weekend rally was “impressive”, with ETH at the top $4,300 for the first time since 2021, with BTC temporarily surpassing $122,000, and now trading at $120,104, an increase of 1.3% over the past 24 hours.
Traders are currently keeping an eye on Tuesday's US CPI report, with a potential cooler print to bolster expectations for a September Fed rate cut.
Ilya Otichenko, lead analyst at cex.io, said Ilya Otichenko. Decryption The Ethereum ETF is experiencing “a local FOMO that was developing amid the reestablished bullish momentum surrounding Ethereum.”
The bullish momentum was supported by some of the most powerful Ethereum use over the years, with Otychenko counting transactions at “active addresses surge to the highest levels since early 2021”, bringing the total value to the highest ever high.
However, digital asset ETP trading volumes fell 23% from the previous month, referring to a typical summer market pattern.
