Introduction: Ethereum Spot ETF Flows Gain Momentum

The cryptocurrency market is witnessing a significant divergence between Ethereum and Bitcoin, as recent data highlights contrasting trends in spot ETF flows.

Recent data from Glassnode indicates that while Bitcoin exchange-traded funds (ETFs) have faced net outflows for the first time in eight weeks, Ethereum spot ETFs have seen four consecutive weeks of net inflows.

While BTC ETFs saw a slight decrease in their holdings from their late-May peak, with an estimated 11,500 BTC outflow, ETH ETFs have been diligently accumulating, adding 97,800 ETH to their balance.

The total balance of Ethereum ETFs now stands at about 3.77 million ETH, which is still slightly below the February 2024 peak of 3.81 million ETH.

Despite the strong institutional interest in cryptocurrencies, recent numbers from CoinDesk show a reversal in Bitcoin ETF inflows.

The past week saw a total of $295.4 million in outflows from Ethereum ETFs, marking the seventh straight week of gains for the asset. As of May 25, Ethereum inflows made up 10.5% of all crypto assets under management.

In a significant development, BlackRock (NYSE:BLK) completed a notable purchase of 249.925 shares of iShares Bitcoin Trust (NYSE:IBIT) for an aggregate sum of $34.7 million.

This bulk buy follows a report by the Wall Street Journal that several large asset managers are planning to launch their own Bitcoin ETFs later in 2024.

Bitcoin ETF Outflows Continue

The iShares Bitcoin Trust (IBIT), the primary bitcoin ETF in the U.S., experienced its largest daily outflow on May 30, with an estimated $430.8 million exit from the fund’s holdings.

This follows a report by the WSJ that several big-shot asset managers are preparing to launch their own versions of the bitcoin ETF later this year.

This move is seen as a response to the SEC’s recent approval of several crypto ETFs.

Despite the ETF outflows, some institutions are still bullish on bitcoin and making significant investments in the cryptocurrency.

For instance, MicroStrategy (NASDAQ:MSTR) is planning to sell a portion of its bitcoin holdings to fund new bitcoin purchases.

In a Form 4 filing with the U.S. Securities and Exchange Commission (SEC) on Monday, BlackRock disclosed a new

price in its 13F filing for the period ending March 31.

Also Read: Institutional Money Flocks Into Ethereum As ETH ETFs Register 4th Week Of Accumulation: A Deep Dive

What Is An ETF And Why Does It Matter?

An exchange-traded fund (ETF) is a type of investment fund with shares that are traded on a stock exchange. ETFs are similar to mutual funds in that they pool money from many investors to invest in a basket of assets, such as stocks, bonds, or commodities.

However, ETFs have several key differences from mutual funds.

ETFs are bought and sold throughout the day like any other stock on an exchange. This contrasts with mutual funds, which are priced and traded only once at the end of the trading day.

ETFs are typically structured as open-end funds, meaning that they can create or redeem shares to meet investor demand. In contrast, closed-end funds have a fixed number of shares outstanding.

The SEC approved the first Bitcoin futures ETFs in 2026, paving the way for the launch of several such ETFs by asset managers like ProShares, Invesco (NYSE:IVZ), and State Street (NYSE:SST).

Later in 2024, the SEC also approved the first Bitcoin spot ETFs from firms like BlackRock, WisdomTree (NYSE:WIST), and Ark Invest. These ETFs are designed to provide investors with a way to track the price of Bitcoin without having to directly buy, sell, or hold the cryptocurrency.

The approval of Bitcoin spot ETFs was a major milestone for the cryptocurrency industry. It is expected to open up the market to a new class of investors, including retail traders and institutions.

The SEC is currently considering several applications for Ethereum spot ETFs. These ETFs would be structured in a similar way to Bitcoin spot ETFs and would allow investors to gain exposure to the price of Ether.

Despite the recent outflows from Bitcoin ETFs, the broader cryptocurrency market continues to show resilience amid macroeconomic uncertainty.

This is a developing story. Benzinga will keep readers updated with any new developments.