Ethereum (ETH) has struggled with a 20% year-to-date decline, but institutional investment flows into Ethereum-based funds have surged, outpacing Bitcoin for the first time this year.
Last week, investors poured $793 million into Ethereum-related funds, taking advantage of ETH’s price drop to $2,100, according to CoinShares data.
In contrast, Bitcoin investment products received $407 million in inflows, as macroeconomic uncertainty and trade tensions weighed on broader risk assets.
Eric Trump’s Ethereum Endorsement Sparks Market Interest
Investor sentiment toward Ethereum shifted significantly after Eric Trump, son of U.S. President Donald Trump, posted on X (formerly Twitter) that it was a “great time to add ETH.”
His edited tweet, which originally included “You can thank me later,” received over 13.6 million views, potentially influencing market participants.
In my opinion, it’s a great time to add $ETH.
— Eric Trump (@EricTrump) February 3, 2025
Ethereum ETFs Continue to Attract Capital Despite Market Weakness
Since their launch in July 2024, Ethereum spot exchange-traded funds (ETFs) have accumulated $3.2 billion in inflows. Despite ETH’s recent price struggles, Citi analysts remain optimistic, noting that:
- Total value locked (TVL) on the Ethereum blockchain has surged, indicating sustained network growth.
- Ethereum’s role in institutional portfolios may expand, especially given Trump-linked investments in the asset.
- The SEC’s ongoing regulatory shifts could improve Ethereum’s positioning against competitors like Solana and Layer-2 networks.
Ethereum’s Market Position vs. Bitcoin
Ethereum’s recent underperformance coincides with Bitcoin’s rising market dominance, which now exceeds 60%, the highest level in years. However, Ethereum’s increasing ETF inflows suggest renewed investor confidence.
While ETH is still trading 45% below its all-time high of $4,878, continued institutional accumulation could signal a potential price recovery, especially as regulatory clarity improves under the Trump administration.
Whether Ethereum can sustain this momentum or if Bitcoin’s dominance will reassert itself remains to be seen. But for now, Ethereum’s strong ETF inflows mark a notable shift in investor sentiment.
