Bitcoin (BTC) Market Dominance Over Ethereum (ETH) Extends into the Spot ETF Segment

Spot Ethereum ETFs may have brought some excitement into the market, but the hype has not been anywhere near what we have seen with Bitcoin.

Bitcoin (BTC) may have stolen the limelight with its recent ETF performance, but how does the world’s second-largest cryptocurrency fare in the same arena? Our analysis delves into the institutional liquidity dynamics surrounding Bitcoin and Ethereum (ETH) ETFs.

Bitcoin ETFs netflows averaged almost 300,000 BTC in the last 2 weeks, according to Coinglass. Meanwhile, Ethereum had a total spot ETF netflow of -114,350 ETH.

Bitcoin enjoyed stronger demand from the capital markets, compared to ETH in the spot ETF segment. Our analysis also observed the same disparity in fund holdings.

According to CryptoQuant, ETH fund holdings amounted to 2,026,328.5 ETH, valued at $5.32 billion at ETH’s press time price. Notably, ETH fund holdings were still observed to be trending down at the time of writing, despite the market’s recovery.

On the other hand, Bitcoin fund holdings amounted to 280,951.35 BTC, valued at $17.07 billion at press time, a little over 3 times more than ETH. This was despite BTC fund holdings also declining over the last 4 weeks.

The aforementioned data confirmed that Bitcoin is more preferable in the capital markets, compared to Ethereum. This may explain why funds hold more in Bitcoin than Ethereum. However, Ethereum also wins in other key areas too.

For example, it has a much higher total address count with balance at 116.97 million. In comparison, Bitcoin had a total of “just” 52.67 million total addresses with balance – Less than half of the total Ethereum addresses. This highlighted one of Ethereum’s strengths as an expanding ecosystem. Perhaps one of the biggest reasons why Ethereum recently received Spot ETF approvals.

There’s no doubt that Bitcoin’s early lead against Ethereum offers a clear advantage. However, Ethereum also presents an opportunity that the institutional class of investors are starting to embrace. Besides, Ethereum ETFs are only a few weeks old, while Bitcoin ETFs have been around for months.

The remaining months of 2024 should provide a clearer picture of how Ethereum will fare in the macro capital market. Nevertheless, the findings confirm that Ethereum is at a bit of a disadvantage against Bitcoin in terms of securing institutional liquidity. It may explain the differences between BTC and ETH’s price action too.

The above is the detailed content of Bitcoin (BTC) Market Dominance Over Ethereum (ETH) Extends into the Spot ETF Segment. For more information, please follow other related articles on the PHP Chinese website!