Inflows to spot Ethereum (ETH) exchange-traded funds (ETFs) are growing as investors rotate money out of Bitcoin (BTC).
Discover the Best Stocks and Maximize Your Portfolio:
- See what stocks are receiving strong buy ratings from top-rated analysts.
- Filter, analyze, and streamline your search for investment opportunities with TipRanks’ Stock Screener.
The latest data shows that investors and traders have pivoted to Ethereum ETFs since the start of February. The nine Ethereum ETFs listed in the U.S. have recorded net inflows of $393 million in recent weeks while 11 spot Bitcoin ETFs have seen net outflows of $376 million.
The rotation comes as sentiment towards BTC softens, say analysts. Since U.S. President Donald Trump’s inauguration on Jan. 20, the price of Bitcoin has fallen 14% to $95,500. At the same time, the price of Ethereum has risen 10% to trade around $2,700 per digital token.
Ethereum Upgrade
Analysts say that the pivot to Ethereum is being driven by a rotation that has come after Bitcoin hit an all-time high of just over $109,300 on Jan. 20. Excitement is also building for Ethereum’s upcoming “Pectra” upgrade, which aims to optimize the consensus layers of Ethereum and help it better compete against rival Layer 1 protocols such as those found on crypto Solana (SOL).
At the same time, institutional investors are increasingly focused on cryptocurrencies and allocating capital to ETFs such as those tied to the price movements of Ethereum. Some analysts are forecasting that the price of ETH will be above $3,000 by the end of the current first quarter.
Is ETH a Buy?
Most Wall Street firms do not offer ratings or price targets on Ethereum. So instead we’ll look at its three-month price performance. As the chart below indicates, the price of ETH has declined 11.82% over the last 12 weeks, although the crypto has bottomed and recovered about 10% so far in February.
