Last week, U.S. spot Ethereum ETFs did the unthinkable, racking up a staggering $2.12 billion in net inflows in just seven days. That’s not just a good week, it’s the biggest haul since these funds launched, and it’s sending a clear signal: the smart money isn’t just betting on Bitcoin anymore.
This wasn’t just about Ethereum, though. The entire digital asset space is seeing money pour in at a historic pace. Across all crypto investment products, last week’s $4.39 billion in total inflows wasn’t just impressive, it was the single biggest week ever recorded, even topping the frenzy we saw after the 2024 U.S. election. And here’s the kicker: this isn’t some flash in the pan. We’re now looking at 14 straight weeks of inflows, pushing the year-to-date total past $27 billion.
The U.S. is leading the charge (no surprise there), but it’s not alone. Switzerland and Australia have also seen steady inflows, while places like Hong Kong and Canada are trailing slightly. Even more telling? Some markets, like Germany and Sweden, are actually seeing outflows, likely early investors cashing out profits while the getting’s good.
But here’s where things get really interesting. While Bitcoin’s dominance has been the story for most of this cycle, something shifted last week. Bitcoin’s market share dropped 6.9%, the steepest weekly decline since December 2023, as traders started rotating into higher-risk, higher-reward altcoins.
This is classic mid-bull market behavior. After Bitcoin’s monster run, investors begin looking for the next big thing, and right now, Ethereum is leading that charge. But it’s not alone. XRP just hit a new all-time high, Solana’s DeFi ecosystem is buzzing again, and even Cardano is waking up after a long slumber. The message from the market is clear: altcoin season isn’t just coming, it’s already here. Behind the scenes, there’s a fascinating dynamic playing out. On one side, long-term Bitcoin holders, many of whom have been sitting on life-changing profits since early 2024, are finally starting to take some profits. On the other side, ETFs, retail investors, and new entrants are eagerly snapping up that supply, keeping the market afloat.
The fact that 95% of Bitcoin holders are still in profit tells us we’re likely in that late-stage bull market phase where early believers cash out while newcomers rush in. Historically, this is when altcoins really start to shine, and Ethereum, as the undisputed leader of the pack, is perfectly positioned to benefit.
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So where do we go from here? The early signs this week suggest the momentum isn’t slowing down. Fidelity’s Ethereum ETF (FETH) alone pulled in $126.9 million in fresh inflows on Monday, and if this pace continues, ETH could be gearing up for its own run at a new all-time high.
But let’s be real, markets don’t move in straight lines forever. With long-term Bitcoin holders starting to distribute and altcoins heating up, we could be entering a phase where volatility picks up. Will Ethereum break out? Will Bitcoin reclaim dominance? Or will we see a full-blown altcoin explosion?
The money is flooding in, the rotation is underway, and Ethereum is leading the charge. Whether you’re a Bitcoin maxi, an altcoin degen, or just watching from the sidelines, this is the kind of market action that reminds us why crypto never gets boring. Buckle up, it’s going to be a wild ride.