Ethereum exchange-traded funds (ETFs) have outperformed their Bitcoin counterparts for six consecutive weeks, highlighting a shifting preference among investors.

Fresh data shows ETH products are drawing steadier inflows even as Bitcoin ETFs continue to command the lion’s share of assets under management.

Weekly Data Highlights Ethereum’s Edge

According to data from SoSoValue, as of August 27, cumulative inflows into U.S. spot Bitcoin ETFs stood at $54.19 billion, with $144.57 billion in assets under management.

By contrast, Ethereum ETFs have drawn $13.64 billion in total inflows and now manage $30.17 billion, representing 5.44% of ETH’s market capitalization. However, while BTC funds remain far larger, Ethereum’s pace of accumulation has become quite notable.

Analysis by DefiLlama based on data from Farside Investors shows that spot ETH ETFs have posted stronger inflows than the BTC ones in six straight weeks, including periods of overall market turbulence.

You would have to go back to the July 14-20 window, when BTC ETFs were in the middle of a long inflow streak, to find the last time they topped Ethereum. In that week, the Bitcoin-based products saw $2.386 billion in net inflows against Ethereum’s $2.182 billion. Since then, it has all been downhill for the OG cryptocurrency.

Between July 21 and 27, Bitcoin ETFs saw just $72.3 million in inflows, while Ethereum ETFs brought in $1.84 billion. The trend deepened from July 28 to August 3, when BTC posted $642.9 million in outflows compared to ETH’s net gains of $154.3 million.

Even in weeks where both asset classes recorded losses, ETH still fared better. For example, between August 18 and 24, Bitcoin funds shed $1.179 billion, while only about $241 million worth of capital trickled out of Ethereum ETFs.

With still a few days left in the last week of August, ETH is again leading after raking in over $1.2 billion in inflows. Meanwhile, since Monday, their BTC counterparts have collectively managed a more modest $388.6 million.

Market Context

Looking closer, within the ETF ecosystem, BlackRock dominates both asset classes. Its IBIT product leads Bitcoin with $83.54 billion in net assets after a $50.87 million single-day inflow on August 27.

On the Ethereum side, the investment firm’s ETHA fund accounts for $17.19 billion in assets and added $262.63 million that same day, dwarfing activity from competitors such as Fidelity and Grayscale.

The story is also similar in the markets, with the two leading crypto assets moving in opposite directions. Bitcoin is trading at $112,967, down slightly by 0.4% on the week compared to ETH’s 7.5% pump in the same period.

BTC also lags in the monthly charts, dipping by 5%, while ETH went up by almost 19% in that time. In one year, ETH has advanced by 86%, which is broadly in line with Bitcoin. Furthermore, both assets recently hit new all-time highs, but have since dropped from their respective peaks by almost the same rate.

One hundred days after the Markets in Crypto-Assets (MiCA) framework took effect, most of the crypto industry is still racing to catch up.

On April 14, Circle’s executive Patrick Hansen, citing data from the European Securities and Markets Authority (ESMA), reported that only 11 stablecoin issuers and 15 crypto-asset service providers (CASPs) had received authorization.

The low figures underline the sector’s ongoing struggle to meet MiCA’s compliance requirements.

Hansen emphasized that without a MiCA license, crypto firms cannot passport their services across the 30 countries in the European Economic Area (EEA). This restriction is driving companies to accelerate their licensing efforts.

However, Hansen identified some key gaps, such as the fact that no asset-referenced token (ART) issuers have yet been authorized.

He also noted that regulators have received only about 25 white papers for digital assets that do not fall under EMT or ART classifications. This covers large-cap tokens such as Bitcoin and Ethereum.

As a sign of increasing enforcement, Italy’s financial authority, CONSOB, has added 15 names to its list of non-compliant entities, reflecting growing scrutiny under the new framework.

Licensed stablecoin issuers

Since MiCA took effect, 11 stablecoin issuers from six EU countries have been approved to issue e-money tokens (EMTs). So far, regulators have authorized 16 EMTs, 10 pegged to the euro and six to the US dollar.

The list of approved entities includes Circle (issuer of USDC), Banking Circle, Fiat Republic, Quantoz Payments, Membrane Finance, Salvus, Societe Generale, StablR, Stablemint, and Schuman Financial.

Meanwhile, Tether, the issuer of the world’s largest stablecoin USDT, remains absent from the list. Its failure to comply with MiCA standards has led to delistings from several EU-based exchanges.

However, Tether has touted its Handron platform and investment in Quantoz Payments as its answer to the regulatory challenge.

MiCA-compliant CASPs

On the CASP front, ESMA has listed 15 authorized providers.

These include major crypto platforms like Crypto.com, OKX, Bitpanda, eToro, and Crypto Finance, alongside traditional financial institutions like BBVA, Clearstream, and Flatex.

Notably, some previously listed firms, such as MoonPay and Hidden Road, no longer appear on the registry. This could suggest changes in their status or ongoing regulatory review.

Germany currently leads the region with six licensed CASPs, followed by Malta with five.

Mentioned in this article