The cryptocurrency market has seen a remarkable surge in investor interest, with inflows reaching $1.3 billion over the past week. This marks the fifth consecutive week of positive net inflows, highlighting continued confidence in digital assets despite market fluctuations. The sharp increase underscores a shifting dynamic within the crypto sector, as investors pivot towards Ethereum amid anticipation of major network upgrades and growing institutional adoption.
Ethereum took the lion’s share of these inflows, pulling in $793 million—nearly double the $407 million allocated to Bitcoin. This trend reflects a changing investor sentiment, as Ethereum’s upcoming Pectra upgrade draws heightened attention. Meanwhile, Bitcoin continues to maintain its role as the dominant digital asset, but its recent inflows have been relatively subdued compared to Ethereum’s momentum.
Ethereum’s Surge Driven by Pectra Upgrade Hype
Ethereum’s impressive performance in recent inflows can be attributed to mounting anticipation surrounding its Pectra upgrade. Investors have been closely monitoring this development, which is expected to enhance the network’s efficiency and scalability. As Ethereum’s price briefly dipped to $2,500 earlier in the week, many took the opportunity to accumulate holdings ahead of the anticipated upgrade, fueling further inflows.
Data from the Ethereum spot ETF market further supports this growing interest. Grayscale’s Ethereum Trust (ETHE) recorded outflows of 8.57K ETH on February 10, but other funds saw significant additions in prior days. For instance, BlackRock’s ETHA ETF added 95.95K ETH on February 4, while Fidelity’s FETH ETF gained 17.33K ETH on February 3. These institutional moves indicate strong confidence in Ethereum’s future price potential, with many analysts predicting a rise beyond the $4,000 mark in the coming months.
Bitcoin Steady Amid Market Shifts
While Ethereum has been in the spotlight, Bitcoin remains a cornerstone of the cryptocurrency market. The digital asset registered $407 million in inflows over the past week, demonstrating steady investor interest. However, Bitcoin ETFs have seen mixed activity, with funds like GBTC experiencing net outflows of 480.17 BTC on February 10, while BlackRock’s IBIT recorded a positive inflow of 574.55 BTC. Other funds, such as FBTC and BTCO, registered declines, leading to an overall weekly net outflow of 1.93K BTC on February 10.
Despite these fluctuations, Bitcoin continues to dominate the crypto market, particularly in exchange-traded products (ETPs), where it maintains the largest share of total assets under management (AUM).
However, institutional investors are increasingly exploring alternative digital assets, with Nasdaq filing to list ETPs for XRP and Litecoin. These filings highlight a growing appetite for diversified crypto investment opportunities beyond Bitcoin and Ethereum.
