This altcoin attracted more investment in one week than Bitcoin did in the entire month.

An altcoin captured $1.590 billion in weekly inflows into crypto investment funds, surpassing Bitcoin's entire monthly activity in this space. What does this unprecedented investment reveal about the behavior of institutional investors?

According to CoinShares' weekly report on investment flows into digital asset funds, Ethereum has just achieved what no other cryptocurrency has managed this year: absorbing more institutional capital in seven days than Bitcoin has in thirty. 

The last report The firm's weekly report, published by James Butterfill, notes that Ethereum-based products attracted inflows totaling $1.590 billion, far outpacing the monthly flows recorded by Bitcoin, which saw net outflows of $175 million. 

Butterfill emphasizes that this divergence is not only statistically significant, but also signals a strategic shift in the decisions of large institutional investors.

Ethereum leads in a full institutional positive streak

Digital asset investment products experienced a week of historic inflows, accumulating $1.900 billion and marking the 15th consecutive week of positive flowsEthereum took the lead with its second-best weekly performance on record, a fact that reinforces its growing relevance to financial institutions.

In cumulative terms, Ethereum has already recorded $7.790 billion in inflows so far this year, surpassing the results for all of 2024. Interest is focused on ETH-backed exchange-traded funds (ETFs), amid a context where the market appears to anticipate regulatory developments in the US, especially around spot ETFs. As reported by this outlet, several of the world's largest asset managers, including BlackRock, are seeking SEC approval to include mechanisms such as staking in ETH investment products, with the aim of maximizing returns for investors. 

Now, the disparity between ETH and BTC isn't just reflected in amounts, but in direction. While Ethereum receives new money, Bitcoin suffers some redemptions. And that, in the current environment, isn't interpreted as a technical signal but rather as a tactical stance. According to Butterfill, the current investor attitude toward Ethereum and altcoins raises questions about whether we are entering a new phase. altseason o altcoin season. 

Bitcoin slows despite interest in ETFs

Although Bitcoin remains the leading asset in the crypto ecosystemWeekly flows reveal a lull in its investor appeal. The $175 million outflows stand in stark contrast to the historic peaks experienced at the beginning of the year, when BTC spot ETFs were launched in the United States. 

However, this drop does not imply that institutions are abandoning Bitcoin. Butterfill clarifies that the slowdown in capital inflows into BTC financial products could be due to a readjustment of investors' portfolios, where interest may be temporarily shifting to altcoins such as Ethereum, Solana and XRP, in search of differential returns.

It's worth noting that regional flows also had an impact. The United States recorded inflows of $2.000 billion, Germany $70 million, while Canada, Brazil, and Hong Kong reported significant outflows.

Is an altcoin season beginning?

Now, Ethereum wasn't the only one to raise institutional capital this week. Solana saw inflows of $311 million and XRP of $189 million, reinforcing the idea that altcoins are regaining prominence in this sector. Even smaller assets like SUI, with $8 million in inflows, are showing signs of institutional interest.

However, the behavior of other altcoins suggests caution. For example, Litecoin and Bitcoin Cash experienced outflows of $1,2 million and $660.000 respectively, indicating that risk appetite is not widespread among alternative cryptocurrencies to Bitcoin. Rather than speculative euphoria, analysts observe a fine-tuning of digital assets with ETF potential in the United States or broader use cases.

In this context, Ethereum benefits from its technological maturity and DeFi ecosystem and also from the Expectations for a spot ETF that integrates staking. 

Institutional investment redefines strategic positioning

The digital asset market is showing a significant evolution in how large institutional investors are viewing and managing their portfolios. So far this month, investment funds have received inflows reaching 11.200 million, even surpassing the 7.600 billion registered in December 2024. This figure shows that the trend is no longer simply focused on choosing between Bitcoin or Ethereum; now a more sophisticated strategy is being sought, where diversification and adaptation to regulatory and technological changes for each cryptoasset play a crucial role.

Bitcoin, as the cornerstone of the market, It continues to be the undisputed protagonist and a fundamental driver for attracting capital.However, Ethereum has emerged strongly, managing to capture a significant volume of investment in a much shorter period of time. This indicates that Ethereum is not only gaining ground, but is positioning itself as a a reliable and valuable alternative within the ecosystem, complementing Bitcoin's hegemony.

In this context, Butterfill emphasizes that the surge in altcoin inflows this week is not simply a reflection of widespread optimism, but could be driven by anticipation surrounding the potential launch of cryptocurrency ETFs in the US market later this year. This anticipation is marking a new stage in the way institutional investors approach cryptocurrencies and digital assets.