tl;dr
Institutional investors are significantly favoring Ethereum ETFs over Bitcoin ETFs, with Ethereum receiving $704 million in inflows compared to Bitcoin's $86.7 million, marking three consecutive days of dominance. This trend is driven by positive regulatory developments and increased institutional i...
Institutional investors are pouring money into Ethereum funds at nearly three times the rate of Bitcoin, signaling a strategic shift on Wall Street toward the second-largest cryptocurrency. On Wednesday, Ethereum exchange-traded funds (ETFs) saw $704 million in inflows, vastly outpacing Bitcoin ETFs, which drew $86.7 million. This marks the third consecutive day that Ethereum has dominated Bitcoin in ETF inflows, resulting in a cumulative $2.2 billion entering ETH ETFs over three days compared to Bitcoin's $330.9 million.
Experts attribute this surge to favorable regulatory developments and growing institutional interest. Peter Chung, head of research at Presto Labs, highlights that initiatives such as the GENIUS Act and supportive remarks from SEC Chair Paul Atkins on DeFi's growth for institutions have boosted Ethereum’s appeal. This momentum pushed Ethereum’s price to $4,775, a more than 60% increase in the past month and within striking distance of its November 2021 all-time high near $4,900.
The rally has put pressure on bearish traders, leading to $127.41 million in Ethereum liquidations within 24 hours, as short sellers grapple with rising prices. Monthly Ethereum ETF inflows totaling $2.3 billion equate to about 500,000 ETH, exceeding the roughly 450,000 ETH created by the network since the September 2022 merge upgrade. This imbalance between supply and demand is fueling upward price momentum as institutional buyers soak up available Ethereum supply faster than it can be produced.
Standard Chartered recently raised its Ethereum price targets to $7,500 by 2025 and $25,000 by 2028, citing institutional buying at nearly double the pace of Bitcoin accumulation during peak periods. Predictive platforms like Myriad Markets place an 86.9% probability on Ethereum reaching $5,000 by early 2026. Meanwhile, digital asset treasury companies continue to amass crypto assets aggressively, exemplified by Tom Lee’s BitMine increasing its fundraising goal by $20 billion to buy more Ethereum.
Crypto analysts, including Rachael Lucas from BTC Markets, see this convergence of record ETF inflows and growing corporate and sovereign balance sheet allocations as a potent mix of deep structural demand confronting limited supply. This dynamic bodes well for sustained upward price pressure and underscores that digital assets are becoming firmly ingrained in global capital markets.