Ethereum ETFs Gain Momentum as Bitcoin Funds See $1.2B Outflows

Ethereum ETFs have seen significant inflows totaling $78.2 million on June 2, while Bitcoin ETFs faced $1.2 billion in outflows over the same period. This trend suggests a major shift in institutional interest, emphasizing Ethereum’s growing appeal. The ARK 21Shares Bitcoin ETF will soon undergo a 3-for-1 stock split to attract retail investors amid these changes.

Fast Summary
Ethereum ETFs continue to gain traction, posting $78.2 million in inflows on June 2, marking an 11-day streak of positive flows. On the flip side, Bitcoin ETFs saw a dramatic outflow totalling $1.2 billion over three days, highlighting a significant shift in investor sentiment. In an effort to appeal to retail investors, the ARK 21Shares Bitcoin ETF (ARKB) will execute a 3-for-1 stock split, effective June 16.

Ethereum ETFs See Steady Inflows as Bitcoin Loses Traction
June 2 was a notable day for Ethereum spot ETFs, which brought in $78.2 million in net inflows. This figures extends a solid streak of eleven consecutive days of positive flows. Meanwhile, Bitcoin ETFs were not faring nearly as well; on this same day, they recorded outflows of $267.5 million, bringing the three-day total to about $1.2 billion, according to data from Coinglass. Institutional interest appears to be shifting markedly between these two cryptocurrencies.

Bitcoin ETF Outflows Surge as Price Drops Below $104K
The trend has been particularly rough for Bitcoin, as roughly 2,530 BTC exited ETF holdings on June 2 alone. Investors reacted swiftly to the price drop, which fell below $104,000 after a weekend decline of around 4%. Over the previous two days preceding June 2, Bitcoin ETFs had outflows of $394 million and $570 million respectively; it was a swift turn of events in a matter of days. As the data suggests, redemption waves impacted ETF performance significantly.

ARKB Announces 3-for-1 Share Split Amid Market Pressure
In an attempt to boost retail appeal, 21Shares announced on June 2 that their ARK 21Shares Bitcoin ETF would undergo a 3-for-1 stock split on June 16. This move aims to reduce the share price significantly, dropping it from around $104.25 to approximately $35 per share post-split. The firm reassured that the ETF’s core holdings, net asset value, and overall strategy would remain unaffected by this move, which is sought to enhance trading of the shares.

Institutional Appetite Shifts as Ethereum Gains Favor
Interestingly, Ethereum is drawing increased institutional interest, possibly signalling a substantial shift in investment strategy. Wu Blockchain reports that June 2 was the 11th day running with inflows into Ethereum-based funds. While Ethereum has yet to achieve the same level of U.S. ETF approval as Bitcoin, the recent patterns indicate heightened investor confidence, largely fuelled by anticipated staking and scaling upgrades.

ETF Flows Reflect Broader Market Sentiment Shift
The growing divergence in flows between Bitcoin and Ethereum indicates a notable evolution in institutional sentiment. While Bitcoin ETFs are under pressure with rapid outflows, Ethereum ETFs appear to be basking in increasing confidence and interest. The upcoming ARK 21Shares stock split seems to be a calculated move to sustain retail interest during this tumultuous competition.

Investors are on high alert to see whether Ethereum can maintain its robust inflow streak. Meanwhile, Bitcoin ETFs approach a crossroads where they must either stabilise or continue to see capital exiting. Market trends will clearly play a critical role in shaping future sentiment toward these leading cryptocurrencies.