While institutional investors are displaying cautious sentiment and profit-taking towards Bitcoin, Ethereum (ETH) is witnessing a strong inflow of capital, especially through Ethereum ETF funds. This indicates a significant shift in the investment strategy of institutions, placing trust in the long-term growth potential of Ethereum.
The funds #ETFbitcoin have just experienced a week of trading that was not very successful, with a net selling volume of -131.6 million USD, marking the second consecutive week of capital withdrawal. Previously, when Bitcoin set a new all-time high of nearly 112,000 USD at the end of May, Bitcoin ETF funds welcomed a massive buying force of over 3.2 billion USD, demonstrating the important role of large institutions in this price surge. However, concerns about the trade war resurfacing due to actions from the Trump administration have somewhat affected Bitcoin's price, leading to a local profit-taking sentiment among some institutional investors.
In contrast, the funds #ETFEthereum are maintaining impressive growth momentum with 15 consecutive days of inflows, marking the longest inflow streak since the November-December 2024 period. Despite recent macroeconomic fluctuations, ETH ETFs have maintained steady buying of tens of millions of dollars each day, with total inflows in the past half-month reaching nearly 840 million USD. Notably, nearly 600 million USD of that came from BlackRock's ETHA fund, indicating special interest from major players in the traditional financial sector.
As of the close of trading on 06/06 (U.S. time), all 9 Ethereum ETF funds hold ETH worth 9.46 billion USD, with a total inflow of 3.3 billion USD so far. This means that 25% of the total capital inflow into ETH ETFs occurred in just the past three weeks, an extremely impressive figure.
The optimistic sentiment of institutional investors towards ETH has been reinforced since Ethereum implemented the Pectra upgrade in early May, addressing many current issues and paving the way for other important improvements. The management team of Ethereum has also been continuously restructured and committed to transparency, helping to improve the perception of the investor community after a long period of criticism.
Additionally, the excitement of investors for ETH comes from the SEC recently recognizing that staking activities do not violate securities laws, a move that could pave the way for ETH staking proposals within ETF funds, bringing in additional revenue. However, the SEC has yet to approve any staking ETF proposals.
Despite the positive factors, ETH's price remains quite "sensitive" to market fluctuations, such as the conflict between Elon Musk and Donald Trump, which caused ETH's price to drop to the 2,400 USD range and it has not been able to recover what was lost, unlike Bitcoin. However, with strong capital inflows from ETFs, Ethereum is showing significant growth potential and is a noteworthy asset in the current cryptocurrency market context.
Investing in cryptocurrencies carries high risk due to significant price volatility. #anhbacong