The Ethereum Spot ETFs began February 2025 on a strong positive note, recording net inflows double the size in the Bitcoin ETF market in the first week of the month. Interestingly, this development coincided with a bearish trading week for Ethereum, during which its price declined by 16.18%.
Ethereum Spot ETFs Register $420 Million Inflows Amid Price Fall
As prices of Ethereum struggled to find market stability in the past week, the Ethereum Spot ETFs experienced an increased level of market interest translating into a net inflow of $420 million. Data from SoSoValue show the ETH ETFs pulled inflows significantly larger than the $203 million registered by the Bitcoin Spot ETFs despite the premier cryptocurrency having a better price performance.
Commenting on this eye-catching development, Coinbase analysts have attributed Ethereum ETF performance to a spiked interest in ETH as a preferred asset for CME basis trade over Bitcoin.
For context, the CME basis trade is a common trading strategy where market participants go long on an asset in the spot market and short in the future market with intentions to profit from the difference in market prices. According to data from Coinbase, CME ETH basis trade produced a higher gain (16%) than that of Bitcoin (10%) over the last week translating into an increased market institutional interest in the Spot ETFs.
Of the reported net inflows in the Ethereum ETF market, BlackRock’s ETHA remains investors’ favorite with total net deposits of $286.81 million. Unsurprisingly, Fidelity’s FETH came second with aggregate investments of $97.28 million.
Grayscale’s ETHE, ETH, Bitwise’s ETHW, and 21 Shares’ CETH also recorded modest net inflows between $4 million -$18 million. Meanwhile, Invesco’s QETH, Franklin Templeton’s EZET, and VanEck’s ETHV all record zero net flows. Over the last trading week, the Ethereum Spot ETFs saw their net assets decline to $9.88 billion despite a net positive flow. At the time of writing, these ETFs now control 3.17% of the ETH market cap.
ETH Price Overview
At press time, Ethereum trades at $2,681 following a 1.46% rise in the last 24 hours. However, daily trading volume is down by 45.15% and is now valued at $16 billion.
According to its daily trading chart, the Ethereum Relative Strength Index is currently at 34.03 heading in an upward direction. This data suggests strong potential for a price reversal following last week’s price crash. In driving any price rally, market bulls will encounter strong resistance in the $3400 price zone, pushing past which could allow a return to the local market peak of $4,000.
