US Ethereum Spot ETF Sees Stronger Inflows After Federal Reserve’s Interest Rate Cut

Following the US Federal Reserve’s recent interest rate cut, Ethereum spot exchange-traded funds (ETFs) have seen a significant surge in inflows, outpacing Bitcoin.

According to data from Farside Investors, a total of $43.2 million was invested in US Ethereum (ETH) spot ETFs on the 25th, marking the second consecutive day of inflows. The breakdown of these inflows includes $9.4 million into BlackRock ETHA, $6.4 million into Fidelity FETH, $800,000 into Ark21Shares CETH, and $26.6 million into Grayscale Mini ETH.

In contrast, Bitcoin (BTC) spot ETFs saw a net inflow of $105.9 million, continuing a streak of inflows for the fifth consecutive trading day. BlackRock IBIT received an inflow of $108 million, while Bitwise BITB saw an inflow of $2.1 million. However, Fidelity FBTC and Ark21Shares ARKB experienced net outflows of $33.2 million and $47.4 million, respectively.

Cryptocurrency media outlet The Block analyzed the trend, stating, “Ethereum has been performing better than Bitcoin since the US Federal Reserve made a ‘big cut’ to its benchmark interest rate by 50bp (0.5% points) last week.” The Block also noted that while Bitcoin leads in total inflow, Ethereum is growing at a faster rate.

Market data from CoinMarketCap shows that Bitcoin has increased by approximately 2.7% over the past week, while Ethereum has surged by around 8.2%.

These developments suggest a shift in investor sentiment, with Ethereum gaining momentum in the wake of the Federal Reserve’s interest rate cut.