Following a choppy August marked by back-and-forth flows, Bitcoin and Ethereum exchange-traded funds posted a strong turnaround last week.
Bitcoin ETFs saw five consecutive days of inflows, while Ethereum products logged four straight days of gains, according to SoSoValue data.
Bitcoin was the clear standout, pulling in more close to $2.4 billion in net inflows over the week. Ethereum ETFs added nearly $640 million, rounding out a combined total of almost $3 billion in fresh capital flowing back into the market.
Investor conviction appears to be driven by rising expectations that the Federal Reserve will begin cutting interest rates. Markets are now pricing in a near 94% chance of a rate cut at next week’s FOMC meeting, with both Coinbase and Morgan Stanley projecting additional easing through the end of the year.
Lower rates are widely seen as a tailwind for risk assets, particularly crypto, where liquidity and momentum play major roles.
The shift in monetary policy is already having an impact. Bitcoin has surged to a three-week high above $116,000, decoupling from the Nasdaq after months of tight correlation. Analysts believe institutional inflows — especially through ETFs — could supercharge the next leg higher.
Derive’s Sean Dawson sees Bitcoin climbing to $140,000 by year-end, with upside to $250,000 if inflows remain strong. Fundstrat’s Tom Lee offered a similar view, telling CNBC that Bitcoin “can easily get to $200,000 before the end of the year.”
Ethereum, meanwhile, has been quietly leading the market, outpacing Bitcoin with nearly 200% gains since mid-April, compared to Bitcoin’s roughly 50% rise over the same period.
While much of the ETF flow spotlight has focused on Bitcoin, analysts say several structural drivers are building a strong long-term case for Ethereum.
“Ethereum is waking from its slumber,” said Samir Kerbage, CIO at Hashdex, who now sees a path toward $10,000, citing three key catalysts: the rise of staking, the explosion of tokenised assets, and the coming generational wealth transfer that favors crypto adoption.
Bitcoin is up 0.4% over the past 24 hours to trade at $115,720.
Ethereum is up 1.9% in the same period to $4,635.
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