Bitcoin and Ethereum ETFs Experience Notable Shifts in Market Trends

After a tough period, Bitcoin ETFs have seen significant inflows, with a notable increase of over $900 million on April 22, while Ethereum’s ETFs struggle to keep pace, with mixed results. The ETH/BTC ratio shows Ethereum lagging behind Bitcoin, indicating a potential end to a prolonged decline but with uncertainty in its recent positive trend.

Crypto markets are seeing a shift as Bitcoin and Ethereum ETFs attract renewed interest. Roughly twenty days ago, this sector faced challenges, with a notable decrease in investments so much so that by April 11, Bitcoin was struggling under the $80,000 mark. Then, seemingly out of nowhere, the trajectory began to change, stirring hope among investors.

There was a significant rally on April 15, marking a turning point with over $76 million flowing into Bitcoin ETFs that day. However, it didn’t all come up roses as subsequent days saw an outflow of nearly $170 million on April 16. Nonetheless, the trend quickly reversed, and each day leading up to yesterday showcased positive inflows. Notably, Bitcoin’s price went from struggling at around $85,000 on April 14 to stabilising above this figure by the weekend.

On April 21, a remarkable surge occurred with almost $390 million in net inflows hitting the books, coinciding with BTC’s price jumping above $86,000. The impressive momentum was solidified on April 22, with daily inflows surpassing $900 million. While this doesn’t set an all-time high, it certainly marks an improvement from earlier this month, with Bitcoin also peeking above $90,000 for a time.

However, Ethereum’s performance tells a different story. Its price has been relatively stagnant compared to Bitcoin for quite some time. The decline in daily net outflows for Ethereum ETFs didn’t reverse until April 17, lagging behind Bitcoin by two days. Ethereum saw sporadic outflows on April 21 and 25, even as Bitcoin was enjoying strong gains. Up until now, Ethereum has only managed three days of positive net inflows in a row, whilst Bitcoin has notched up seven.

Despite the differences in performance, Ethereum did record its monthly best on April 25, with total net inflows reaching $104 million. This is indicative of some resilience, but it remains less robust compared to Bitcoin’s gains.

To get a clearer picture, one can examine the ETH price in BTC terms (the ETH/BTC pair). Back in early December 2024, ETH exchanged for 0.040 BTC after a short altseason. However, this value has seen a slow decline to fall below 0.020 BTC early in the New Year then dipped even further, marking the lowest levels since December 2019—a notable anomaly in the typical market cycle.

Recent days have shown ETH fluctuating around the 0.019 BTC mark, suggesting the potential end of a downturn that’s persisted for close to two and a half years. The recent uptick in spot Ethereum ETF activity could indicate a reversal, albeit the current positive trend is too brief to provide full assurance. Investors will be watching closely as the market evolves, seeking stability and growth in the ever-volatile crypto landscape.