Title: Ethereum ETFs Struggle as Bitcoin Dominates: Citi Analysts Predict Reversal
In July 2024, Ethereum (ETH) exchange-traded funds (ETFs) faced $610 million in net outflows, while Bitcoin ETFs saw $330 million outflows. Since then, ETH has consistently underperformed BTC, losing global market share.
Despite Layer 2 Ethereum activity rising, Layer 1 remains subdued. Citi analysts believe the recent FOMC decision could shift this trend, potentially reversing ETF outflows if Ethereum network activity improves.
While BTC ETFs continue to attract attention with $17.2 billion in net inflows, Bitcoin's first-mover advantage and "digital gold" status have helped it outperform ETH. The recent correlation between cryptocurrencies and U.S. equities is expected to remain strong, driven by macroeconomic factors.
In conclusion, Ethereum's market share recovery hinges on increased Layer 1 activity, while Bitcoin's dominance is likely to continue due to its established position. Understanding these trends can help investors make informed decisions in the evolving financial landscape.