Ethereum News Today: Ethereum's ETF Surge and Corporate Demand Fuel Bullish Shift Over Bitcoin

Ethereum is poised for a potential pullback to $4,150 before climbing toward $5,100, according to recent analyst forecasts. This projection follows a period of strong performance for Ethereum relative to Bitcoin, driven by surging inflows into spot Ethereum ETFs and increased participation in corporate digital asset treasuries. As of late August, the ETH/BTC ratio has climbed to its highest level in 2025, signaling a shift in market dynamics in favor of Ethereum.

K33 Research reported that Ethereum has outperformed Bitcoin over the past two months, with ETH gaining approximately 70% since June 1 compared to around 9% for BTC. This has pushed the ETH/BTC ratio above 0.037, reaching a new annual high. The firm attributes this to a dual surge in demand for Ethereum, fueled by spot ETF inflows and corporate treasury activity. U.S. spot Ethereum ETFs have absorbed nearly $9.4 billion since June 2, while digital asset treasury holdings have increased to over 2% of circulating ETH, up from 0.2% in early June. These trends have absorbed approximately 3.7% of ETH’s supply since early June, a significant figure given Ethereum’s smaller market cap relative to Bitcoin.

Further evidence of heightened demand for Ethereum includes the performance of leveraged products. The VolatilityShares 2x Ether ETF has seen its exposure rise by 456,000 ETH since June 2 and now accounts for about 61% of CME Ethereum futures open interest as of August 18. This highlights a growing appetite for amplified Ethereum exposure, complementing the inflows into traditional spot ETFs.

In contrast, Bitcoin’s performance has shown signs of cooling, particularly after the recent surprise rise in U.S. producer price index (PPI) data. The PPI rose by 0.9% month-on-month in July, exceeding the 0.2% consensus forecast, which led to an immediate sell-off in Bitcoin and other risk assets. Bitcoin’s price fell from around $121,000 to near $117,700 within minutes of the data release, with crypto liquidations crossing $1 billion in the following hours. Derivatives positioning has also shifted more defensively, with CME Bitcoin futures premiums compressing to about 5.5% annualized and open interest remaining near early-May lows.

Analysts from Mitrade Insights and CryptoQuant’s EgyHash also highlight Ethereum’s growing institutional demand as a key driver of its outperformance. As of late August, investment funds are estimated to hold approximately 6.1 million ETH, a 68% increase from December 2024 and a 75% rise from April 2025. The fund market premium for Ethereum has expanded to an average of 6.44% over the past two weeks, far exceeding levels observed during previous market cycles. This suggests growing confidence among institutional investors, particularly with the introduction of Ethereum-based ETFs and the potential for staking functionality within such products.

Looking ahead, market participants remain focused on regulatory clarity in the U.S., particularly with proposed legislation such as the CLARITY Act, which aims to formally classify Ethereum and Bitcoin as digital commodities. Such developments could further accelerate institutional adoption and inflows, particularly as the proposed changes would provide a clearer legal framework for digital asset investment products.

Source:

[1] ETH/BTC ratio hits 2025 high as spot Ethereum ETFs draw... (https://www.theblock.co/post/367602/eth-btc-ratio-2025-etfs-treasuries-ethereum)

[2] Ethereum vs. Bitcoin: ETH/BTC Ratio Climbs to Yearly... (https://www.mitrade.com/insights/news/live-news/article-3-1053086-20250820)