Is Ethereum Poised to Lead as BlackRock’s Bitcoin ETF Faces Record Outflows?

Ethereum Gains Momentum as Bitcoin Struggles with Diverging ETF Flows

Ethereum is emerging as the stronger performer in the crypto market as Bitcoin faces mounting pressure from record ETF outflows. Over the past week, U.S. Bitcoin funds shed $1.5 billion, with BlackRock’s iShares Bitcoin Trust ETF (IBIT) losing $188.7 million on December 24 alone​. In contrast, Ethereum ETFs have consistently attracted inflows, suggesting a possible shift in investor sentiment heading into 2025.

Ethereum’s Steady Inflows vs. Bitcoin Outflows

While Bitcoin ETFs faced four consecutive days of net redemptions, Ethereum products continued to gather capital. BlackRock’s Ethereum Trust ETF added $44 million in inflows, while Ether spot ETFs recorded $53.6 million on Christmas Eve, following a $130.8 million inflow on December 23​. This separation underscores Ethereum’s relative strength, with its ETF market showing resilience despite Bitcoin’s downturn.

Fidelity’s Bitcoin Fund and the ARK 21Shares Bitcoin ETF contributed to the selling pressure, losing $83.2 million and $75 million, respectively. The Bitwise Bitcoin ETF was the only product to see positive flows, adding $8.5 million. However, even with this exception, the broader trend highlights a clear preference for Ethereum over Bitcoin.

Technical Analysis – Ethereum vs. Bitcoin

Ethereum’s daily chart reveals a key technical setup that could reinforce bullish sentiment. ETH is trading at $3,488, holding just above its 50-day moving average of $3,480. This suggests buyers are defending this level, which could open the door for further upside if sustained.

Bitcoin, meanwhile, is teetering just above its 50-day moving average at $94,642. A decisive break below this threshold could trigger additional liquidations, pushing BTC toward $93,000. On the other hand, a bounce from this level may offer short-term relief, though persistent ETF outflows remain a concern.

Thin Holiday Volume – A Wild Card

With Christmas trading volumes significantly lower, market moves are more prone to volatility. Thin liquidity can exaggerate price swings, amplifying both gains and losses. If Ethereum continues attracting inflows during this period, it could drive ETH closer to $3,600.

Looking Ahead to 2025

Ethereum’s ETF inflows and relative price stability suggest it may outperform Bitcoin in the short term. The ETH/BTC ratio, currently at 0.035, points to Ethereum’s growing strength against Bitcoin. Analysts predict this trend could continue into January, driven by expectations of upcoming network upgrades and institutional interest.

For Bitcoin, the key lies in ETF stabilization. If outflows ease, BTC could reclaim $100,000 resistance. However, continued selling pressure may keep Bitcoin range-bound while Ethereum benefits from changing market conditions.

More Information in our Economic Calendar.