Ethereum News Today: Ethereum Overtakes Bitcoin as Institutions Bet on Ether’s Future

Ethereum (ETH) has surged to a new record high, surpassing its November 2021 peak as a dovish stance from the U.S. Federal Reserve and a resurgence of inflows into Ethereum-based ETFs have driven renewed optimism in the market. As of late August 2025, ETH traded above $4,867, reflecting a 250% increase from its April lows. This performance has been attributed to a combination of macroeconomic expectations and growing institutional adoption of the token.

Federal Reserve Chair Jerome Powell’s remarks at the Jackson Hole symposium reinforced expectations of a 25 basis point rate cut in September, signaling a potential easing of monetary policy. This dovish tone has traditionally favored high-risk, high-return assets like Ethereum. The broader financial environment has also seen a shift in capital allocation, with investors increasingly favoring altcoins over Bitcoin. Bitcoin’s market dominance has dropped below 60% for the first time in four months, reflecting a rotation into assets like Ether that offer higher growth potential [1].

Ethereum-based ETFs have seen significant inflows, with Ethereum-focused funds attracting $2.87 billion in inflows in a single week—77% of total crypto ETF inflows during that period. These ETFs now manage over $12.1 billion in assets, according to Farside Investors. The iShares Ethereum ETF (ETHA) has been a key performer, accumulating nearly $8 billion in inflows across 75 trading sessions, including a nine-day streak totaling $2.8 billion [2].

The institutional adoption of Ethereum has also accelerated, with corporate entities acquiring substantial amounts of ETH. Over the past month, approximately $1.6 billion worth of ETH has been added to corporate treasuries, with companies like BitMine, SharpLink, and GameSquare among the most active buyers. As of late August, corporate holdings of Ethereum had grown to over $29.75 billion, representing a significant portion of the token’s total supply [1].

Ethereum’s performance has also been supported by regulatory clarity and infrastructure improvements. The proposed GENIUS Act and favorable SEC guidance on liquid-staking tokens have reduced institutional barriers to entry, while the Dencun upgrade has enhanced the network’s scalability by slashing transaction fees. Analysts at JPMorgan attribute these developments, along with anticipated SEC approval for in-kind redemptions, to a strengthening case for Ethereum versus Bitcoin [3].

Market sentiment has further been bolstered by whale activity. A major Bitcoin whale has been offloading BTC while simultaneously accumulating ETH, depositing 2,370 BTC—worth $266 million—on exchanges and adding 167,629 ETH, valued at $706 million. This strategic reallocation highlights confidence in Ethereum’s long-term prospects, particularly as it gains traction in corporate and institutional portfolios [4].

Despite these gains, Ethereum ETFs have not been without volatility. In early August, the iShares Ethereum ETF (ETHA) recorded an outflow of $196.6 million, the second-largest in its history, raising concerns about potential shifts in market dynamics. However, this was followed by strong inflows in subsequent days, indicating sustained institutional interest. Over the past month, Ethereum ETFs have seen net inflows of over $2.96 billion, while Bitcoin ETFs recorded modest outflows [2].

The renewed momentum in ETH has positioned it as a leading contender in the post-ETF market, with analysts suggesting it could challenge Bitcoin’s dominance in the long term. Standard Chartered has raised its price target for Ethereum to $7,500 for the end of 2025 and $25,000 by 2028. Hyblock analysts also highlight strong demand-supply dynamics, suggesting that Ethereum’s price could reach $13,000 in the coming months [1].

Source:

[1] ETH Hits New Highs as Fed Turns Dovish, Ether ETF Inflows Resume (https://cointelegraph.com/news/eth-hits-new-highs-as-fed-turns-dovish-ether-etf-inflows-resume)

[2] iShares Ethereum ETF Surpasses $11 Billion YTD Inflows Holds 6.3M ETH Spot ETFs 628fdd3d (https://thedefiant.io/news/markets/ishares-ethereum-etf-surpasses-11-billion-ytd-inflows-holds-6-3m-eth-spot-etfs-628fdd3d)

[3] Ether Outpaces Bitcoin as ETF Inflows, Corporate Buying Accelerate: JPMorgan (https://www.coindesk.com/markets/2025/08/21/ether-outpaces-bitcoin-as-etf-inflows-corporate-buying-accelerate-jpmorgan)

[4] Whale Rotation Alert: Bitcoin Dump, Ethereum Stacking in Full Swing (https://www.mitrade.com/insights/news/live-news/article-3-1063386-20250823)