Ether ETFs Draw Disproportionate Flows as Bitcoin Volume Drops to October Low

U.S. spot bitcoin exchange-traded funds recorded roughly $8.05 billion in trading volume over the five sessions ending Friday, marking the lowest total for a full trading week since October 11, 2024. The 14% drop from $9.37 billion in the prior week reflects subdued activity as the underlying asset hovered near $64,110, well below its late-2024 peaks. Net inflows for the week were a marginal $33.8 million, the weakest showing in a three-week stretch of positive flows.

The paltry weekly inflow figure masked intense late-week volatility. After attracting $499.1 million through Wednesday, bitcoin funds bled $225.2 million on Thursday and $240.1 million on Friday. BlackRock’s iShares Bitcoin Trust, the largest fund by assets, bore the brunt of the selling, surrendering $414.7 million in those final two days to finish with $95.5 million in weekly outflows. These outflows were partly offset by $85.8 million entering the Grayscale Bitcoin Mini Trust and $78.1 million into the ARK 21Shares Bitcoin ETF.

While bitcoin stagnated, spot ether ETFs captured outsized investor interest. The funds pulled in $103.9 million, more than tripling the bitcoin cohort’s intake for a second consecutive week. BlackRock’s iShares Ethereum Trust drove the category with $96.3 million in inflows, supplemented by $9.9 million for the Grayscale Ethereum Mini Trust, while Fidelity’s FETH recorded $6.2 million in net outflows.

The divergence is most apparent when measuring flows against fund size. Ether products hold just $10.17 billion in net assets—about an eighth of bitcoin’s $77.82 billion stash—yet their recent weekly inflows represented 1% of their total assets. Bitcoin inflows, by contrast, amounted to a mere 0.04% of its asset base. In the last three weeks, ether products have accumulated $293.8 million, drawing almost even with the $306.9 million allocated to bitcoin funds.

Trading volume underscores this shifting demand. Ether ETF volume reached $2.78 billion, equating to 35% of bitcoin’s volume despite holding only 13% of the assets. Ether is also dominating July’s flows, with $337.7 million in new capital compared to bitcoin’s $234 million.

Despite the recent resurgence, neither asset class has recovered from a brutal start to 2026. Bitcoin ETFs still sit on roughly $5.23 billion in net outflows for the year, while ether funds are down $1.15 billion. The current rotation suggests institutions are using the lull in bitcoin prices to selectively rebalance toward ether rather than exiting digital assets entirely.