As an analyst with over two decades of experience in the financial markets, I’ve seen numerous battles between assets and their respective products, but none quite like this one between Bitcoin (BTC) and Ethereum (ETH). The launch of exchange-traded funds (ETFs) for these two giants of the crypto world has provided a unique opportunity to compare their performance and investor sentiment.
For approximately three months now, we’ve been keeping an eye on the flow of assets into exchange-traded funds that mirror the performance of the second-largest cryptocurrency. In comparison, we’re analyzing these inflows against the data from the early days of Bitcoin ETFs to spot any significant differences.
The numbers don’t lie, and they clearly rule in favor of BTC.
ETF Battle Between BTC and ETH
2024 is likely to be remembered as the year when two significant cryptocurrencies gained official recognition from U.S. regulators, as they were approved for their own Exchange Traded Funds (ETFs). Notably, Bitcoin spearheaded this development, with 11 such funds being launched in mid-January following more than a decade of rejections by the U.S. Securities and Exchange Commission.
In a manner reminiscent of Ethereum‘s journey, it encountered some additional obstacles along the way. Regardless, by the end of July, a total of seven financial instruments had been introduced.
The differences between these assets are clear, as investor attitudes and actions have varied significantly. Data from CryptoQuant over the first 79 days following their launches supports earlier findings by CryptoPotato that there’s been less demand for Ethereum compared to Bitcoin, where interest has often been strong (and at times remains so).
During the initial phase of their operation, Ethereum-based ETFs experienced a total withdrawal of approximately $4 billion. Conversely, Bitcoin ETFs witnessed a significant influx of funds exceeding $29 billion during the same period.
The Ethereum Exchange-Traded Fund (ETF) appears to be facing reduced interest, as it’s experiencing withdrawals, contrasting with the Bitcoin ETF that’s seeing substantial deposits.
After 79 days of ETF trading:$BTC ETF Flow: +$29.1B$ETH ETF Flow: -$4.1B
— CryptoQuant.com (@cryptoquant_com) October 10, 2024
ETH vs. BTC Price Performances
On July 23rd, Ethereum ETFs started operation, with the value of its underlying asset approximately $3,500 at that time. However, since then, it has dropped by more than $1,000 and currently trades below $2,400. This marks a significant decrease of about 32% over the last 79 trading days.
On the day Bitcoin ETFs were launched (January 11), its price hovered around $47,000 but experienced significant fluctuations right away. In just two months, it reached a record-breaking high of $73,800. Although it dipped by the 79th trading day (May 3), it was still holding strong at approximately $60,000.
As an analyst, I can express this by saying: In the initial 79 days of ETF trading within the U.S., the leading cryptocurrency experienced a significant surge in value, amounting to approximately 28%. Furthermore, these products garnered over $29 billion in net inflows. Conversely, the terrain surrounding Ethereum ETFs presents a stark contrast.
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2024-10-10 16:08