We are currently seeing a clear divergence in institutional capital: while Bitcoin ETFs are seeing modest inflows, Ethereum ETFs are experiencing significant outflows. This suggests that large-scale investors aren't exiting the crypto market entirely; they are simply rotating their funds from one asset to another.
When these flows move in opposite directions, it creates a "rotation trade" signal. This means Ethereum may continue to face price pressure and underperform relative to Bitcoin until we see a reversal in these ETF trends.
Do you track ETF flows as part of your research, or do you focus more on on-chain data?
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