The post Institutions Dump Ethereum for Bitcoin : What’s Next for Crypto? appeared first on Coinpedia Fintech News
Following the ongoing global economic shift catalyzed by the recent Fed rate cut last week, more institutional investors are eyeing the Bitcoin (BTC) and altcoin industries. Furthermore, the impressive performance of Gold (XAU) is expected to boost the crypto bullish outlook in the fourth quarter.
Moreover, historical data shows that the crypto industry turned bullish in October, peaked in December, and consolidated in January.
Institutional Investors Flee Ethereum Market in favor of Bitcoin
According to a weekly report by CoinShares, digital asset investment products registered a second consecutive week of cash inflows totaling $321 million. The firm attributed the rising demand for these products to the 50 bps Fed rate cut.
While Bitcoin was the primary focus for institutional investors last week, with a net cash inflow of around $284 million, Ethereum remained an outlier with a net cash outflow of about $29 million.
The firm attributed the poor performance of Ethereum’s digital asset investment products to the notable cash outflows from Grayscale Trust amid low demand from the other spot Ether ETFs.
Meanwhile, Solana’s digital asset investment products registered small cash inflows, totaling around $3.2 million last week.
Also Read : What Happened to Bitcoin Today? Update 23 September 2024 ,
Market Impact
As Coinpedia has reported in the past, the approval of the US spot Ether ETFs did not gain traction like that of Bitcoins. The latest market data shows that the US spot Ether ETFs have registered a net cash outflow of over $607 million since approval. On the other hand, the US spot Bitcoin ETFs have registered a net cash inflow of over $17 billion to date.
As a result, ETH price has dropped over 25 percent in the past two months, while Bitcoin price has only retraced less than 10 percent.
Nevertheless, Bitcoin dominance has been depicting an inevitable reversal in the near term, accelerating the cash rotation to the altcoin industry, thus favoring Ether.