Ethereum more resilient than Bitcoin!

As the battle for supremacy between Bitcoin (BTC) and Ethereum (ETH) continues to dominate discussions within the crypto community, a new element is changing the game. Analyst Leon WAIDMANN of the Onchain Foundation revealed that Ethereum could have greater growth potential than Bitcoin in a context of transition to spot ETFs (Exchange-Traded Funds). This analysis is based on product data from Grayscale, a leader in crypto management, which recently converted its trusts into ETFs.

Ethereum vs Bitcoin: a dynamic favorable to ETH

Since converting Grayscale’s investment products into ETFs, Ethereum appears to be on a more promising trajectory than Bitcoin. Leon WAIDMANN, Head of Research at Onchain Foundation, states that “over the first 50 days of flow monitoring, Ethereum loses liquidity much more slowly than its counterpart Bitcoin”. This observation is based on analysis of ETF outflows, where ETH shows better resistance. So while Bitcoin-based products experience larger drawdowns, Ethereum-based products show much more limited losses.

This data is crucial because it illustrates a change in the dynamics of institutional investors. According to WAIDMANN, this better performance of Ethereum could pave the way for more significant “upside potential”, provided that the observed trend continues. This perspective comes in a context where the two cryptos, although market leaders, see their trajectory diverge following the introduction of ETFs in the United States.

Bitcoin inflows and mixed signals for Ethereum

At the same time, Bitcoin is also showing signs of robustness. According to some data, Bitcoin ETFs have seen positive inflows over the past seven days, with over $1.35 billion in Assets Under Management over the past week. “Yesterday, we witnessed the most productive day for Bitcoin ETFs since mid-July, with almost $0.5 billion added in a single day,” emphasizes Léon WAIDMANN.

However, for Ethereum, the signals are more mixed. Although ETH recorded five positive days over the past week, it also saw two days of net outflows. The total inflows for Ethereum over this period amounted to $93.2 million, a far cry from the positive figures for Bitcoin. This fluctuation shows that, despite strong fundamentals, Ethereum’s volatility could dampen investor enthusiasm in the short term.

The competition between Bitcoin and Ethereum for attracting investment flows appears to be intensifying, as each asset presents its own advantages and challenges. While Ethereum appears to have greater upside potential thanks to improved liquidity resilience, Bitcoin continues to attract massive investment volumes, consolidating its position as a benchmark asset.