- US spot Ethereum ETFs recorded their largest ever weekly inflow of US$2.12 billion, contributing to a record US$4.39 billion across all digital asset investment products.
- This marks the 14th consecutive week of inflows, bringing annual flows to US$27 billion, with the US accounting for the majority of investment activity.
- Bitcoin dominance fell 6.9% as investors rotated into higher-risk altcoins, indicating a typical mid-cycle bull market phase.
- With 95% of Bitcoin holders still in profit, long-term holders have begun selling for the first time since early 2024 while ETFs and retail investors absorb the supply.
As Bitcoin surged to a new all-time high (ATH) and spot BTC exchange-traded funds (ETFs) pulled in unprecedented inflows, Ethereum was quietly on track to amass its own record haul. Last week, US spot Ethereum ETFs attracted a record net US $2.12 billion (AU $3.25 billion).
According to a CoinShares report, all “digital asset investment products” had a record week. They wrote that US$4.39 billion (AU$6.73 billion) now stands as the largest ever weekly inflow, “surpassing the previous peak of US$4.27B set post-US election in December 2024”.
That’s 14 straight weeks of inflows, bringing annual flows to US$27 billion (AU$41.45 billion).
While the US accounts for most of the inflows with AU$4.3 billion (AU$6.6 billion), Switzerland and Australia also saw positive net inflows with US$47.3 million (AU$72.61 million) and US$17.3 million (AU$26.55 million), respectively. Hong Kong and Canada had lower inflows, while Brazil, Germany and Sweden had some outflows – probably taking some profits off the table.
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Ethereum ETFs Continue Buying Spree
This week appears set to continue the trend, as Monday’s figures show a promising US$296.5 million (AU$454.87 million) in net inflows for the ETH funds – with Fidelity’s FETH seeing the largest inflows of US$126.9 million (AU$194.68 million).
The altcoin rally – which also saw a new ATH for XRP, though not yet for ETH – has led to a 6.9% drop in Bitcoin dominance. Analysts at Bitfinex said this is the biggest drop in Bitcoin dominance since December 2023, and suggests that “the market is rotating into higher beta assets, a hallmark of mid-cycle expansion phases”.
In other words, investors are pulling money out of Bitcoin and putting it into more speculative altcoins, which is exactly what tends to happen in the middle of a bull‑market cycle when people chase higher‐risk, higher‐reward assets.
The analysts continued to explain that most Bitcoin holders are still in profit, with 95% trading above their purchase cost, a classic sign of a late‑stage bull market. As long‑term holders finally sell some coins – while ETFs, retail investors, and newcomers snap them up – the market shows healthy rotation but could weaken if buying momentum slows.
This historically marks late-stage bullish phases where profit-taking by short-term holders intensifies. Long-term holders have started distributing coins for the first time since early 2024, while ETFs, retail, and newer market participants absorb that supply.
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