Ethereum News Today: Ethereum ETFs Outpace Bitcoin in Inflows as Ether Surges 9.92% on Institutional Shifts

Ethereum exchange-traded funds (ETFs) are gaining momentum, challenging Bitcoin’s historical dominance in institutional crypto allocations. Recent inflows into Ether-based ETFs have outpaced Bitcoin’s on select days, with Ethereum attracting $402.5 million in inflows versus Bitcoin’s $363.45 million. Total crypto ETF inflows for the period reached $766 million, reflecting a potential shift in investor priorities. Ether’s price surged 9.92% to $3,669, driven in part by unprecedented U.S. spot ETF inflows and institutional adoption.

The trend highlights a broader reallocation of capital toward Ethereum. Over the past 12 days, Ethereum ETFs have consistently drawn funds, including $296 million in a single day. Institutional participants have added $1.6 billion in Ethereum to their portfolios in Q2 2025, while Ethereum-focused treasuries now hold $5.3 billion in ETH, acquiring tokens at a rate 36 times the daily production. Weekly inflows into Ether ETFs hit $996 million, with cumulative inflows since mid-April reaching $3.3 billion. This momentum has coincided with Ethereum’s 27% price rise, pushing its value toward $4,891, while Bitcoin’s market dominance has dipped to a four-month low.

Structural factors are amplifying Ethereum’s appeal. Supply-tightening mechanisms, such as staking, have reduced circulating ETH availability, enhancing its scarcity narrative. Regulatory clarity, including the potential approval of staking within ETFs under the CLARITY Act, could further boost Ethereum’s institutional adoption. Additionally, Ethereum’s role in decentralized finance and smart contracts positions it as a utility-driven asset, contrasting with Bitcoin’s store-of-value narrative. Analysts note these dynamics are reshaping investor behavior, with ETH ETFs now competing for a larger share of institutional portfolios.

Despite Ethereum’s gains, Bitcoin’s ETF dominance remains robust. While Ethereum ETFs have outpaced Bitcoin in daily inflows by approximately $50 million, Bitcoin still attracts the bulk of institutional allocations. The altcoin market cap has expanded by 41% since June, with Ethereum leading the charge. However, Bitcoin’s entrenched position requires Ethereum to not only match but consistently exceed BTC inflows to achieve long-term overtake. Challenges include Ethereum’s higher volatility and regulatory scrutiny in certain jurisdictions, which could hinder broader adoption.

Market observers emphasize that the current shift reflects short-term momentum rather than a definitive long-term reallocation. Institutional investors are diversifying their holdings, but Bitcoin’s first-mover advantage and brand recognition remain formidable. For Ethereum to fully close the gap, it must sustain its inflow trends while addressing structural hurdles. Regulatory developments and macroeconomic conditions will play critical roles in determining whether this ETF-driven competition reshapes the crypto landscape in favor of Ether or solidifies Bitcoin’s leadership.