Ethereum ETFs surge past $1.5B – Is ETH about to outperform Bitcoin?

contributor

Posted: February 12, 2025

Ethereum ETFs are drawing significant capital, signaling strong institutional interest in ETH’s future
Increased Ethereum ETF volumes and the Pectra upgrade could spark a potential market rebound

As the market landscape shifts, a noticeable trend is emerging – Ethereum [ETH] ETFs are seeing a significant surge in capital inflows, while Bitcoin [BTC] ETFs are experiencing a slight dip. This growing interest in Ethereum has sparked speculation that an “Ethereum Season” might be on the horizon.

With institutional investors turning their attention to ETH, could this be the beginning of a new era where Ethereum outperforms Bitcoin?

Ethereum ETFs vs. Bitcoin ETFs

Source: IntoTheBlock

Spot Ethereum ETFs have seen a significant hike in volume, with trading activity spiking in early 2025. Ethereum ETF volumes surged past $1.5 billion on certain days, reflecting growing institutional interest.

The momentum picked up in late 2024, with sustained higher volumes into the new year.

Source: IntoTheBlock

Comparatively, Bitcoin ETFs still dominate though, consistently reaching $5-10 billion in daily volume.

However, Ethereum ETFs are carving out a larger share, signaling a shift in investor sentiment. While Bitcoin ETFs exploded upon launch in early 2024, Ethereum’s steady growth is a sign of a maturing market, rather than just an initial hype cycle.

Source: X

A key observation is the increasing ETF inflows from late October to December 2024, coinciding with ETH’s price climbing above $3,600. However, inflows turned volatile in January 2025, with notable outflows as ETH dropped below $2,700.

This hinted that institutional demand played a significant role in ETH’s rally, but it has since weakened due to ongoing market uncertainty and price volatility. The recent sharp inflow spike in early February could indicate renewed accumulation, possibly positioning ETH for a recovery.

Could this be the beginning of “Ethereum Season?”

Ethereum Season would refer to a period when ETH outperforms Bitcoin in price and market momentum, similar to what’s often referred to as “altseason.” Currently, while Bitcoin ETFs still dominate in total volume, Ethereum’s growing share may be a sign of increasing confidence among investors.

January 2025 saw a 7% drop in ETH’s price, and the recent sell-offs saw the price fall as far as 27%. And yet, historical patterns suggest that accumulation during downturns could precede a strong rebound. Key catalysts include the upcoming Pectra upgrade in Q1 2025, which aims to improve scalability and adoption.

Additionally, steady institutional inflows and DeFi expansion continue to reinforce Ethereum’s dominance. If this trend persists, ETH could enter a breakout phase, though market volatility remains a critical factor.

Read Ethereum’s [ETH] Price Prediction 2025–2026

What does the future hold for Ethereum?

Source: TradingView

Ethereum’s daily chart highlighted a recovery attempt from its recent lows, with the price at $2,707 (+1.67%). The RSI was weak at 36, pointing to oversold conditions but not yet confirming strong buying momentum. The MACD seemed bearish, though the histogram also showed signs of reducing downward pressure.

At the time of writing, the broader downtrend since early January was intact, but a potential short-term relief rally could push ETH towards $2,900–$3,000 if buying volume increases.

However, the lack of a clear bullish crossover in MACD and weak RSI indicated that sustained upside may be uncertain. A rejection at resistance could lead to a retest of $2,500.

Source link