Spot Ethereum exchange-traded funds (ETFs) recorded their second consecutive week of outflows, signaling a slowdown in investor appetite after months of steady inflows. Meanwhile, spot Bitcoin ETFs saw renewed strength, attracting hundreds of millions of dollars in fresh institutional capital.

Cooling Sentiment Hits Ether ETFs

Data from SoSoValue shows Ether ETFs collectively posted $243.9 million in net redemptions for the week ending Friday. This follows the previous week’s $311 million in outflows, extending the downtrend as traders rotate into Bitcoin.

Friday alone saw $93.6 million withdrawn from Ether funds. BlackRock’s ETHA ETF led the exits with $100.99 million in outflows, while Grayscale’s ETHE and Bitwise’s ETHW recorded modest inflows.

The recent withdrawals bring cumulative inflows across all Ether spot ETFs to $14.35 billion, with total net assets at $26.39 billion. That represents roughly 5.55% of Ethereum’s market capitalization, underscoring a pullback in institutional demand compared with earlier months of enthusiasm following the ETF launches.

Bitcoin ETFs Regain Momentum

In contrast, spot Bitcoin ETFs recorded a strong rebound. According to SoSoValue, these funds attracted $446 million in net inflows this week as institutional investors returned to the market.

On Friday, Bitcoin ETFs added another $90.6 million, pushing cumulative inflows to $61.98 billion. Total net assets now stand at $149.96 billion, accounting for about 6.78% of Bitcoin’s market cap.

BlackRock’s iShares Bitcoin Trust (IBIT) led the pack with $32.68 million in inflows, followed by Fidelity’s FBTC, which drew $57.92 million. IBIT remains the largest Bitcoin ETF, holding $89.17 billion in assets, while FBTC follows with $22.84 billion.

Investors Pivot Back to “Digital Gold”

Vincent Liu, chief investment officer at Kronos Research, said the recent ETF data reflects a clear rotation into Bitcoin as investors double down on its “digital gold” appeal. “We’re seeing strong positioning around Bitcoin as a store of value, especially with macro uncertainty and the expectation of interest rate cuts,” Liu noted.

According to Liu, the return of inflows to Bitcoin ETFs signals renewed institutional confidence, with traders viewing the asset as more resilient in the current market environment. This shift contrasts with Ether, where demand has cooled amid slower onchain activity and limited short-term catalysts.

Ethereum Faces a Pause in Institutional Interest

While Ethereum remains a key player in decentralized finance and smart contracts, the recent ETF trend highlights waning near-term enthusiasm. Market participants suggest that some institutions are taking profits after the initial wave of inflows, while others are waiting for new developments—such as network upgrades or stronger activity in the DeFi and layer-2 ecosystem—before re-entering.

Analysts point out that Ethereum’s fundamentals remain sound but are currently overshadowed by Bitcoin’s stronger market narrative. With the “digital gold” narrative gaining traction, investors appear more comfortable parking funds in Bitcoin as global markets anticipate monetary easing and a potential rebound in risk assets.

Outlook: Bitcoin Strength Likely to Continue

Looking ahead, Liu expects Bitcoin ETF inflows to remain steady into next week, supported by the growing belief that central banks may soon cut interest rates. “If macro conditions turn supportive, Bitcoin could continue to see capital inflows as traders seek exposure to hard assets,” he said.

As for Ethereum and other altcoins, a recovery may hinge on improved network usage or new catalysts. “Ethereum could regain momentum only if onchain activity strengthens or a major development shifts sentiment,” Liu added.

While Ether’s short-term weakness has caught attention, analysts say the broader picture still favors digital assets over the long run. The divergence between Bitcoin and Ether ETF flows suggests investors are rebalancing rather than exiting the crypto market entirely.

Both assets continue to play distinct roles: Bitcoin as a store of value and macro hedge, and Ethereum as the backbone of decentralized applications. For now, however, Bitcoin appears to be the preferred choice among large investors seeking stability amid shifting global market dynamics.