Ethereum ETFs See $177M Inflow as Institutions Rotate from Bitcoin

Data from SoSoValue reveals a notable shift in capital allocation among crypto exchange-traded funds. On Tuesday, spot Ethereum ETFs attracted $177.64 million, their highest inflow in six weeks. This figure notably exceeded the $151.74 million that flowed into spot Bitcoin ETFs on the same day, ending a period of corrections for the flagship cryptocurrency. The divergence extends to other major altcoin ETFs, with Solana (SOL) seeing the next highest net flow at $16.54 million, followed by XRP ETFs at $8.73 million. Funds for Dogecoin (DOGE) and Chainlink (LINK) remained flat, painting a picture of selective investor appetite.

According to Rachel Lin, CEO and Co-Founder of SynFutures, this data tells a clear story. “ETF flows are telling a clear story,” Lin told Decrypt, suggesting that investors are “becoming more selective inside crypto.” She attributes Ethereum’s steady inflows to institutional players who increasingly view ETH not merely as a speculative asset but as foundational infrastructure. This perspective is bolstered by the growing momentum in staking-enabled products and the tokenization sector, which leverages Ethereum’s smart contract capabilities.

The movement of capital suggests a deeper trend than a short-term trade. “The divergence we’re seeing—with Ethereum pulling meaningful inflows even when Bitcoin slows—suggests a structural rotation rather than a short-term trade,” Lin explained. “Institutions that entered through Bitcoin are now broadening their exposure.” This rotation is occurring even as Bitcoin still commands the largest overall allocations. The structural shift is reflected in Ethereum’s price, which rose 6.9% over 24 hours to $3,329, according to CoinGecko data.

Bullish sentiment is crystallizing in prediction markets. On the platform Myriad, users now assign a 58% probability to Ethereum reaching $4,500, compared to a 42% chance of it falling to $2,500. This represents a significant increase from under 30% at the start of the month, indicating a sharp rise in investor confidence. (Myriad is owned by Decrypt’s parent company, Dastan.) So far, ETF products have accumulated $21.40 billion worth of Ethereum, representing roughly 5% of the token’s $400 billion market capitalization.

A monumental shift in traditional finance infrastructure is providing a powerful tailwind for all crypto ETFs. Matthew Hougan, Chief Investment Officer of Bitwise, highlighted a critical development to Decrypt. “We’re seeing the four major wirehouses in the U.S.—Morgan Stanley, Merrill Lynch, UBS, and Wells Fargo—open up to crypto in the last six months,” Hougan said. This move by these financial giants now allows “trillions of dollars” in client assets potential access to crypto ETFs, a gateway that was firmly closed just half a year ago.

Hougan is unequivocally optimistic about the impact, stating, “ETFs are phenomenally bullish.” He expects that 2026 “will be a record year for flows” as this new pipeline of capital begins to activate. Rachel Lin from SynFutures echoed this bullish outlook, anticipating ETF inflows to gradually rise heading into 2026 as “more products mature and regulatory clarity improves.” On the macro front, Lin expects easing conditions to spur another wave of ETF demand, with Ethereum “likely absorbing a larger share of incremental flows given its utility and yield profile.” While near-term macro uncertainty could heighten volatility, the long-term narrative for institutional crypto adoption, particularly through ETFs, appears firmly entrenched and expanding.