Capital inflows to spot %Ethereum (CRYPTO: $ETH) exchange-traded funds (ETFs) are on the rise as investors rotate out of %Bitcoin (CRYPTO: $BTC).
The latest data shows that investors and traders have strongly pivoted to Ethereum ETFs from Bitcoin in recent weeks.
The nine Ethereum ETFs listed in America have recorded net inflows of $393 million U.S. so far in February while 11 spot Bitcoin ETFs have seen net outflows of $376 million U.S.
The rotation comes as sentiment towards Bitcoin weakens, say analysts. Since U.S. President Donald Trump’s inauguration on Jan. 20, the price of BTC has fallen 14% to $95,500 U.S.
At the same time, the price of Ethereum has risen 10% to currently trade at $2,700 U.S. per token.
Analysts say that the pivot to Ethereum is being driven by a rotation that has come after Bitcoin hit an all-time high of just over $109,300 U.S. on Jan. 20.
Excitement is also building in crypto circles for Ethereum’s upcoming %Pectra upgrade, which aims to optimize the consensus layers of Ethereum and help it compete against rival Layer 1 protocols such as those found on crypto %Solana (CRYPTO: $SOL).
At the same time, institutional investors are increasingly focused on cryptocurrencies and allocating capital to ETFs such as those tied to the price movements of Ethereum.
Some analysts are now forecasting that Ethereum’s price will be back above $3,000 U.S. by the end of the current first quarter.
