US-based spot Bitcoin exchange-traded funds (ETFs) have emerged as a major contributor to Bitcoin spot trading volume, according to blockchain analytics firm CryptoQuant. Julio Moreno, head of research at CryptoQuant, noted that these ETFs now regularly generate between $5 billion and $10 billion in daily volume on active days, reflecting growing institutional demand. While Binance remains the largest crypto exchange by overall spot trading volume—reporting peak daily volumes of up to $22 billion—CryptoQuant estimates that the 11 US spot Bitcoin ETFs account for approximately $2.77 billion in daily trading volume, or 67% of Binance’s daily Bitcoin trading volume, which stands at $4.1 billion [1].
Nick Ruck, director at LVRG Research, emphasized that these ETFs are now playing a pivotal role in price discovery and institutional adoption of Bitcoin. However, Ethereum spot trading remains more concentrated on exchanges like Binance and Crypto.com, with ETFs capturing only 4% of ETH spot volume. This indicates that institutional adoption of Ethereum is still in its early stages compared to Bitcoin [1].
Recent data shows a significant shift in inflows between Bitcoin and Ethereum ETFs. Over the past five trading days, Ethereum ETFs have attracted $1.83 billion in inflows—nearly ten times the $171 million inflows recorded by Bitcoin ETFs during the same period [6]. BlackRock’s iShares Ethereum Trust (ETHA) led this trend, capturing $262.6 million on August 27 alone [2]. This contrasts sharply with Bitcoin ETFs, which saw inflows of just $81.4 million on the same day [5]. The disparity is further highlighted by the fact that Ethereum ETFs have recorded $13.6 billion in cumulative inflows since their launch, with nearly one-third of that total arriving in the past three weeks [2].
BlackRock and Fidelity continue to dominate the ETF landscape for both assets. BlackRock’s ETHA holds $17.19 billion in net assets, more than half of the Ethereum ETF market, while Fidelity’s FETH accounts for $3.68 billion [2]. On the Bitcoin side, BlackRock’s iShares Bitcoin Trust (IBIT) remains the largest product with $83.5 billion in assets under management (AUM), representing nearly 60% of the Bitcoin ETF market [3]. However, Bitcoin ETF inflows have slowed significantly compared to Ethereum, with Bitcoin ETFs posting $171 million in inflows over five trading days versus Ethereum’s $1.83 billion [6].
Institutional adoption appears to be a key driver of these ETF flows. Investment advisers are the largest identifiable holders of both Bitcoin and Ethereum ETFs, according to SEC 13F filings. In Q2, advisers invested over $1.3 billion in Ethereum ETFs, a 68% increase from the previous quarter [3]. Vincent Liu of Kronos Research noted that this trend reflects a growing view of cryptocurrencies as a long-term diversification tool within traditional investment portfolios [6]. As a result, Ethereum has outperformed Bitcoin in price action, rising 18.5% in the past month, while Bitcoin has slipped 6.4% [3].
Despite these developments, Bitcoin ETFs still dominate in terms of overall market capitalization exposure, holding $144.6 billion in assets, or 6.5% of Bitcoin’s total market cap [2]. However, the flow dynamics suggest a shift in institutional preference. Ethereum ETFs now hold $30.17 billion in net assets, or 5.4% of Ethereum’s market cap, indicating strong momentum. Analysts note that if this trend continues and Bitcoin ETF inflows do not stabilize above $200–300 million daily, Bitcoin’s dominance in the institutional crypto space could continue to wane [3].
The growing influence of ETFs in the crypto market is reshaping liquidity and price discovery dynamics. Ruck highlighted that ETF trading activity is increasingly correlated with Bitcoin price movements, with these products now representing a significant percentage of the total Bitcoin supply [1]. As institutional capital continues to flow into regulated, liquid ETF structures, the role of traditional exchanges like Binance may diminish. At the same time, Ethereum appears to be gaining ground in the institutional space, signaling a potential shift in market sentiment and investment strategy.
Source:
[1] title1 (https://cointelegraph.com/news/bitcoin-etfs-take-share-spot-trading-volume)
[2] title2 (https://finance.yahoo.com/news/ethereum-etfs-shock-wall-street-200853321.html)
[3] title3 (https://www.tradingnews.com/news/bitocin-etf-inflows-struggles-as-ethereum-captures-wallstreet-capital)
[4] title4 (https://coincentral.com/blackrock-bitcoin-etf-surpasses-coinbase-and-binance-in-holdings/)
[5] title5 (https://www.mitrade.com/insights/news/live-news/article-3-1077125-20250828)
[6] title6 (https://finance.yahoo.com/news/ethereum-etf-inflows-overtake-bitcoin-110746206.html)
