ETF Inflows Support Bitcoin, But Other Assets Struggle
Bitcoin's price held steady around $83,000 after spot Bitcoin ETFs had their best week of the year. Despite this, other major cryptocurrencies like Ether, XRP, and Dogecoin failed to follow suit.
The inflows into these exchange-traded funds (ETFs) were substantial, with a total of $2.39 billion pouring in during the last week of September. However, not all assets benefited equally from this influx of capital.
A closer look at the numbers reveals that Ether's ETF buying was approximately 12 times its new supply, which should be bullish. Yet, despite this, Ether still declined. The reason behind this lies in the yield offered by staking, which currently stands at around 2.5% a year.
In contrast, US Treasury yields have risen to about 5.24%, making it more attractive for investors to hold government bonds over Ethereum. This could spell trouble for Ether's appeal as a yield asset, particularly among institutional investors like pension funds.