Ethereum is 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 the context of transitioning to spot ETFs (Exchange-Traded Funds). This analysis is based on data from Grayscale’s products, a leader in crypto management, which recently converted its trusts into ETF.

Ethereum vs Bitcoin : a favorable dynamic for ETH

Since Grayscale’s investment products were converted into ETF, Ethereum seems 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 tracking flows, Ethereum is losing liquidity much more slowly than its counterpart Bitcoin.” This observation is based on the analysis of ETF outflows, where ETH shows better resistance. Thus, while Bitcoin-based products suffer larger withdrawals, those based on Ethereum show much more limited losses.

These data are crucial as they illustrate a shift in the dynamics of institutional investors. According to WAIDMANN, this better performance of Ethereum could pave the way for a more significant “upside potential,” provided that the observed trend continues. This perspective comes in a context where both cryptos, despite being market leaders, see their trajectories diverge following the introduction of ETFs in the United States.

Bitcoin inflows and mixed signals for Ethereum

Meanwhile, Bitcoin also shows signs of robustness. According to some data, Bitcoin ETF have recorded positive inflows over the past seven days, with more than $1.35 billion in assets under management during 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,” highlights Leon WAIDMANN.

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

The competition between Bitcoin and Ethereum to attract investment flows seems to be intensifying, as each asset presents its own advantages and challenges. While Ethereum appears to have greater upside potential due to better liquidity resilience, Bitcoin continues to attract massive investment volumes, which consolidates its position as a reference asset.