TL;DR
- BlackRock’s iShares Bitcoin Trust (IBIT) dominates the ETF market with $48.73 billion in assets under management (AUM), despite recent outflows.
- Ethereum ETFs, including Grayscale’s ETHE and BlackRock’s ETHA, continue to see weak investor demand, with cumulative inflows barely surpassing $1 billion since launch.
- Bitcoin’s rising institutional adoption and store-of-value narrative contrast with Ethereum’s regulatory uncertainties and high expense ratios, limiting its ETF appeal.
The Bitcoin exchange-traded fund (ETF) market is proving its resilience as BlackRock’s iShares Bitcoin Trust (IBIT) cements its position as the industry leader. With $48.73 billion in assets under management (AUM) as of March 19, 2025, IBIT remains a dominant force despite experiencing a single-day outflow of $332.6 million on March 1 and a weekly outflow totaling nearly $393 million.
However, IBIT’s year-to-date inflows tell a different story, exceeding $37 billion, demonstrating strong institutional confidence in Bitcoin’s long-term potential. Over the past three months, net flows have reached $4.23 billion, while the one-year net flow stands at a staggering $28.69 billion. The continued accumulation of BTC-based ETFs aligns with Bitcoin’s price surge above $108,000 in December 2024, reinforcing its status as a premier regulated investment vehicle for crypto exposure.
Ethereum ETFs Face Uphill Battle
While Bitcoin ETFs thrive, Ethereum-based funds continue to struggle. The total AUM across Ether ETFs sits at just $7.31 billion, with net outflows of $11.7 million recorded on March 19, 2025. Since their introduction on July 23, 2024, Ethereum ETFs have failed to attract significant capital, with cumulative inflows barely exceeding $1 billion.
Industry leaders like Grayscale’s ETHE, which holds $3.46 billion in AUM, have seen outflows surpassing $4.17 billion since inception. BlackRock’s ETHA, managing $2.33 billion, has also faced sluggish demand. Even record inflow days, such as the $428.5 million seen on Dec. 6, 2024, have been insufficient to reverse the overall negative trend, indicating waning investor confidence in Ethereum-based ETFs.
Institutional Demand Shifts in Favor of Bitcoin
The divergence between Bitcoin and Ethereum ETF performance underscores a shift in investor sentiment. Bitcoin’s growing reputation as digital gold and its integration into institutional portfolios position it as the preferred asset. BlackRock’s infrastructure, particularly its reliance on Coinbase Prime technology for liquidity, has played a crucial role in IBIT’s success.
Ethereum, meanwhile, faces regulatory uncertainty and higher costs, with funds like ETHE carrying a 2.5% expense ratio, far above Bitcoin ETF fees. These factors, combined with Ethereum’s evolving role as a utility-based blockchain rather than a store of value, have deterred institutional investors.
