Spot Ether ETFs see outflows for second consecutive week amid cooling demand

Spot Ethereum exchange-traded funds (ETFs) have experienced two consecutive weeks of outflows, totaling $243.9 million for the week ending on Friday, following a previous outflow of $311 million. This marks a noticeable shift in investor sentiment, which has cooled after several months of strong inflows. BlackRock's ETHA ETF led the withdrawals with $100.99 million, while Grayscale’s ETHE and Bitwise’s ETHW showed minor inflows. Meanwhile, spot Bitcoin ETFs saw a resurgence with $446 million in inflows as institutional confidence returns, with BlackRock's iShares Bitcoin Trust (IBIT) contributing significantly. Analysts suggest there is a strong rotation into Bitcoin as the market favors it as a 'digital gold' and a store-of-value. The ongoing outflows from Ether ETFs indicate weakened demand and stagnant on-chain activity, leaving investors awaiting new catalysts for Ethereum. Looking ahead, some analysts expect Bitcoin inflows to remain robust amid potential economic easing, whereas Ethereum could recover if network activity improves or new catalysts emerge.

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