As Ethereum Gains $130 Million: Is Altcoin Season Coming?
On December 23, US spot Bitcoin (BTC) ETFs lost $226 million, while Ethereum ETFs gained $130 million. The huge gap in net inflows between the two funds has crypto watchers wondering if altcoin season is coming.
ETF Capital Flows Shift From Bitcoin to Ethereum
Bitcoin ETFs have seen outflows of about $1.1 billion since December 19. This follows a 15-day pattern of inflows that has increased the net assets of Bitcoin ETFs from $100 billion to $121 billion.
Bitcoin exchange-traded funds lost $680 million on Dec. 19, the largest single-day outflow since they were introduced earlier this year, reducing their net assets to $105 billion. Grayscale’s GBTC fund sold 1,870 BTC over three days, contributing to the drop.
Market commentators attribute the recent pullbacks to profit-taking, while some believe they signal a shift in investor sentiment against the major cryptocurrency. It appears that Bitcoin ETFs could be losing significant money to Ethereum ETFs.
Recent flow data supports this idea, showing that Ethereum ETFs are gaining popularity. SoSoValue reported $130 million in Ethereum ETF inflows on December 23, while Bitcoin ETFs recorded $226 million in withdrawals.
As institutional interest in the second-largest cryptocurrency by market cap grows, Ethereum ETF capital inflows are expected to surge. A recent report stated that BlackRock’s iShares Ethereum Trust ETF holds over 1 million ETH.
Ethereum is getting stronger
Ethereum has underperformed Solana (SOL), SWISS, and XRP for most of the year, but experts believe it could turn the corner. This confidence stems from the decline in Bitcoin’s dominance, which many see as a sign of the long-awaited “altcoin season.”
Bullish technical indicators are supporting Ethereum price. On December 22, the daily chart showed that the ETH/BTC pair reached a higher low, indicating a trend reversal and potential gains for Ethereum.