Ethereum Sees Strongest Inflow Streak Since US Elections Amid Institutional Interest and ETF Momentum

• Ethereum leads the crypto market with $296.4 million inflows last week, marking its strongest momentum since the US elections.

• The surge follows the impactful Pectra upgrade on May 7, which has significantly boosted institutional interest and Ethereum’s market share to 10.5% of total digital assets.

• Meanwhile, Bitcoin faces its second consecutive week of outflows totaling $56.5 million amid ongoing policy uncertainty, highlighting a divergence in investor sentiment.

Ethereum’s recent inflows hit $296.4M post-Pectra upgrade, driving institutional interest and market dominance, while Bitcoin sees continued outflows amid Fed uncertainty.

Ethereum’s Inflow Surge Signals Renewed Institutional Confidence Post-Pectra Upgrade

According to CoinShares’ latest data, Ethereum attracted $296.4 million in inflows last week, its most robust streak since the November US elections. This inflow contributed to a total weekly crypto inflow of $224 million, extending a remarkable seven-week rally that has amassed over $11 billion despite challenging macroeconomic conditions.

The Pectra upgrade, implemented on May 7, has played a pivotal role in enhancing Ethereum’s network efficiency and user experience, factors that have resonated strongly with institutional investors. This upgrade has not only improved smart contract functionality but also reinforced Ethereum’s position as a leading digital asset.

“Ethereum leads with US$296.4 million in inflows, its strongest run since the US election, now representing 10.5% of total AuM,” the CoinShares report highlighted, underscoring Ethereum’s growing share in the digital asset market.

ETF Inflows Highlight Growing Institutional Appetite for Ethereum

Institutional demand is further evidenced by the sustained inflows into Ethereum exchange-traded funds (ETFs). As reported by COINOTAG, Ethereum ETFs have recorded a 15-day consecutive inflow streak, with over $281 million entering these funds in the past week alone. This contrasts sharply with Bitcoin ETFs, which saw outflows totaling $129 million during the same period.

Such ETF trends indicate heightened confidence in Ethereum’s long-term growth prospects, especially in the wake of regulatory clarity and technological upgrades. Analyst Merlijn the Trader noted, “Ethereum 2025 is 2016 on steroids. Same consolidation, same shakeout, same reversal pattern. Back then, ETH rewrote the charts. Now? We’ve got stronger base, more capital, and ETF momentum.”

Bitcoin Faces Continued Outflows Amid Policy Uncertainty and Market Caution

In contrast to Ethereum’s inflows, Bitcoin experienced its second consecutive week of outflows, losing $56.5 million as investors remain cautious amid ongoing Federal Reserve policy uncertainty. The CoinShares report emphasized that short-Bitcoin products also saw outflows, reflecting a broader hesitance in the market.

Altcoins outside Ethereum showed mixed performance, with Sui (SUI) attracting modest inflows of $1.1 million, while XRP recorded its third consecutive week of outflows totaling $6.6 million. This divergence suggests that while Ethereum is gaining traction, other digital assets are struggling to maintain investor interest.

Market analysts point to Bitcoin’s implied volatility remaining subdued, with traders delaying bullish bets and rolling options to later months, indicating a likely range-bound price action unless significant catalysts emerge.

Ethereum’s Market Share Growth Highlights Shifting Institutional Preferences

With Ethereum now representing 10.5% of total digital asset assets under management (AuM), the asset appears to be reclaiming a leadership role among institutional investors. This shift is particularly notable given the backdrop of macroeconomic headwinds and regulatory developments.

Recent data from COINOTAG shows Ethereum trading at $2,528, up 1.28% in the last 24 hours, reflecting steady investor confidence. The ongoing ETF inflows and network upgrades position Ethereum favorably as institutions prepare for a potential post-rate-hike environment.

Conclusion

Ethereum’s sustained inflows and growing ETF momentum post-Pectra upgrade underscore its strengthening position in the crypto market, driven by enhanced network capabilities and institutional confidence. Conversely, Bitcoin’s continued outflows amid policy uncertainty highlight a cautious market stance. As Ethereum captures a larger share of digital asset AuM, investors should monitor Federal Reserve signals closely to gauge future market dynamics. Ethereum’s trajectory suggests it may remain a key beneficiary in the evolving crypto landscape.