Bitcoin ETFs See $226 Million Outflows While Ethereum Gains $130 Million – Signs Of Coming Altseason?

On December 23, Bitcoin (BTC) exchange-traded funds (ETFs) saw significant outflows totaling $226 million, while Ethereum ETFs saw inflows of $130 million. The stark contrast in net flows between these two ETFs has sparked discussions among cryptocurrency analysts about whether altcoin season may be on the horizon.

Capital flows from Bitcoin ETFs to Ethereum ETFs

Bitcoin ETFs have been experiencing significant outflows since December 19, with total outflows exceeding $1.1 billion at the time of writing. Notably, this trend comes after 15 straight days of inflows, as total net assets of Bitcoin ETFs rose from $100 billion to $121 billion.

On December 19 alone, Bitcoin ETFs recorded $680 million in outflows — the largest single-day outflows since Bitcoin ETFs were introduced earlier this year — bringing their total net assets down to $105 billion. The main contributor to this decline was Grayscale’s GBTC fund, which sold 1,870 BTC over three days.

While some market analysts attribute the recent outflows to profit-taking, others believe this trend could reflect a shift in investor sentiment towards the flagship cryptocurrency. Specifically, it appears that there may be a significant reallocation of capital from Bitcoin ETFs to Ethereum ETFs.

In support of this view, Ethereum ETFs are attracting increasing interest, as evidenced by recent flow data. according to numbers From SoSoValue, Ethereum ETFs received $130 million in inflows on December 23, the same day Bitcoin ETFs reported $226 million in outflows.

Rising capital inflows into Ethereum ETFs is not unexpected, as institutional interest in the second-largest cryptocurrency by market cap continues to grow. Modern a report He noted that BlackRock’s iShares Ethereum Trust ETF has raised more than 1 million ETH.

Increasing bullish sentiment towards Ethereum

Although Ethereum underperformed compared to other cryptocurrencies such as Solana (SOL), SUI, and XRP for most of the year, analysts believe things may be turning in ETH’s favor. One of the main reasons for this optimism is: decrease Bitcoin dominance, which many see as a precursor to the long-awaited “altcoin season.”

Furthermore, bullish technical indicators are feeding in positive Sentiment towards Ethereum price. For example, the ETH/BTC trading pair hit a higher low on December 22 on the daily chart, indicating a potential trend reversal and potential gains for ETH.

In addition, weekly net inflows into Ethereum staking contracts were at the level It risesWhich indicates that more ETH is reserved in the staking. This decrease in circulating supply may create upward pressure on the price of Ethereum.

However, veteran cryptocurrency analyst Ali Martinez said expected The next step for Ethereum will be delayed a bit. At press time, Ethereum is trading at $3,363, down 2.7% over the past 24 hours.

Featured image from Unsplash.com, charts from TradingView.com