Ethereum ETFs Outpace Bitcoin ETFs, Fuel ETH Price Rally
Since their January 2024 launch, Ethereum ETFs have consistently outperformed Bitcoin ETFs, delivering average NAV premiums of 2.1% versus 0.8%. Analysts cite Ethereum’s staking yield of around 4% APY, lower management fees (0.29% vs. 0.35%) and tighter bid-ask spreads as key drivers. Inflows into Ethereum ETFs have accelerated, with spot ETF purchases and corporate treasury acquisitions totaling approximately 2.83 million ETH—32 times net new issuance. This surge fueled a 150% rebound from April lows and a 50% gain in the past month. With ETH ETF assets under 12% of Bitcoin ETF volumes despite a market cap ratio of 19%, Bitwise forecasts $20 billion in ETF and asset manager purchases next year, or around 5.33 million ETH against 800,000 ETH issuance. This persistent supply–demand imbalance is likely to maintain upward pressure on ETH prices, offering traders both capital appreciation and passive income opportunities.
Bullish
The unified news highlights sustained and growing inflows into Ethereum ETFs, outperforming Bitcoin ETFs in premiums, fees and yields. The resulting supply–demand imbalance—spot and corporate acquisitions vastly exceeding new issuance—has led to a significant ETH price rebound and is expected to persist as ETF assets grow from under 12% of BTC ETF volumes toward parity with Ethereum’s 19% market cap ratio. This creates upward pricing pressure in the short term and establishes a bullish framework for longer-term ETH appreciation, especially as staking yields and lower fees continue to attract capital.