Bitcoin ETF has finished its 12-day inflow streak after seeing a $131 million outflow. Ethereum ETF has won $297 million by throttling yields and regulatory momentum. Portfolio rotation can increase your institutional preference for Ethereum over Bitcoin.
The Bitcoin Spot Exchange Trade Fund (ETF) saw a net outflow of $131.35 million on July 21, marking the end of a 12-day inflow streak and highlighting a change in investor appetite.
On the same day, Ethereum ETF attracted a net inflow of $296.59 million, extending its own 12-day drive, highlighting the broader rebalancing trends in its crypto portfolio.
This divergence of the flow between the two biggest cryptocurrencies comes amid growing institutional interest in Ethereum products, strengthened by evolving regulations and opportunities for staking-related yields.
Meanwhile, Bitcoin’s recent price integration has encouraged profit and portfolio adjustments from funds that are closer to the quarter-end reporting cycle.
Holdings of Bitcoin ETFs decrease as inflow stripes stop
Following strong profits earlier this month, Bitcoin ETF began experiencing investor outflows for the first time since early July.
Data from SOSOValue showed a net outflow of $131.35 million on July 21, ending the $6.6 billion duration of cumulative net inflow.
Despite strong trading activities of $4.1 billion daily volume, MARJOR ETFs such as BlackRock’s IBIT and Fidelity’s FBTC have posted flat flow or registered minor losses.
The largest IBIT in the segment with a net asset value (NAV) of $861.6 billion, recorded no new net inflows.
ARKB and Grayscale’s GBTC were even more affected, seeing outflows of $77.46 million and $36.75 million, respectively.
The total assets of all US Bitcoin spot ETFs now stand at $151.6 billion, accounting for 6.52% of Bitcoin’s market capitalization.
The recent recession suggests that some institutions may have recalibrated their holdings or diversified into other crypto assets.
Ethereum ETF net worth increases to $19.6 billion
In contrast to Bitcoin, Ethereum ETFS recorded a 12th consecutive day of net inflow on July 21st.
BlackRock’s Etha attracted $11.98 million, while Fidelity’s Feth raised $126.93 million.
Feth’s Nav is currently at $2.08 billion, while Etha has posted more than $8.16 billion in total cumulative inflows.
Grayscale’s Ethereum funds have seen mixed results.
One recorded a small outflow, while the other posted an inflow of $54.90 million. Vaneck and Franklin Templeton reported that new capital will be added to their Ethereum-based products.
Combined, all Ethereum ETFs currently manage a net worth of $19.6 billion, accounting for 4.32% of Ethereum’s total market capitalization.
The daily trading volume of ETH ETF was $3.21 billion.
Ether and pending laws increase ETH demand
Several market analysts attribute the momentum of Ethereum’s continued influx to include stained ether in ETF products, a feature not available in Bitcoin products.
This allows investors to earn yields while being exposed to price action, a model that appears to resonate with the institution’s asset managers.
The momentum surrounding the actions of Congress’ genius and clarity helped to strengthen Ethereum’s regulatory narrative.
The proposed legislation heading towards the final vote will allow traditional financial institutions to support inclusion in diverse portfolios, allowing traditional financial institutions to more easily integrate.
The combination of staking yields, clarity of regulations and a consistent inflow has changed market sentiment in favor of Ethereum, at least in the short term.
The widening gap in ETF flows reflects an increasing difference in how investors view the strategic role of each asset.
Portfolio rotation refers to a broader crypto strategy shift
Differences in ETF flows may indicate the onset of new allocation trends within an institution’s crypto investment.
Bitcoin ETFs show signs of saturation after recent rallying, and Ethereum ETFs provide yield through staking.
This shift occurs when both asset classes remain under close scrutiny from US regulators and global financial markets.
Short-term fluctuations are common, but data from July 21 suggests that Ethereum is becoming more than just a secondary crypto asset.
