Ethereum News Today: Ethereum Surges 27% as U.S. Legislation Spurs Institutional Adoption Bitcoin Loses 6% Dominance

Ethereum (ETH) has emerged as a central figure in a significant shift within the cryptocurrency market, driven by new U.S. legislative developments and institutional adoption. Bitwise analysts identified this period as a “watershed moment,” noting a 27% surge in the ETH/BTC ratio and a 6% decline in Bitcoin’s dominance, reflecting a reallocation of capital toward altcoins [1]. The Senate’s bipartisan approval of the Genius Act and the House’s passage of the Clarity Act, both signed into law recently, have provided regulatory clarity, positioning Ethereum as a prime beneficiary. These measures are expected to accelerate institutional adoption, particularly in tokenization and stablecoin ecosystems [1].

Ethereum’s appeal is further bolstered by its infrastructure, which hosts 50% of the stablecoin market cap—surpassing $140 billion in July 2025—and 55% of tokenized asset value [1]. The network’s role in decentralized finance (DeFi) and its capacity for staking have attracted major institutional players. Bit Digital, for instance, liquidated its Bitcoin holdings to acquire over 100,000 ETH, while BTCS Inc. and BitMine Immersion Technologies significantly increased their ETH reserves. SharpLink now holds over 360,807 ETH, trailing only the Ethereum Foundation [1].

Derivative markets underscore growing demand, with open interest across exchanges rising by $6 billion and CME futures hitting record highs. Ether ETP inflows reached $2.1 billion, and treasury holdings expanded further after a SPAC deal added 400,000 ETH [1]. Analysts project that the impending launch of Ether staking ETFs by late Q3 2025 could inject an additional $20–30 billion annually into the market, building on existing $70 million daily inflows from spot ETFs [1].

The shift in investor sentiment is also evident in onchain metrics. Over 51 organizations now hold 1.26% of Ether’s total supply through staking, with institutions favoring Ethereum as a base layer for tokenization and traditional finance (TradFi) integration. The decline in the SOL/ETH ratio highlights this trend, as capital increasingly flows into Ethereum’s ecosystem [1].

While volatility remains a concern, Bitwise analysts emphasize that Ethereum’s fundamentals remain robust. Regulatory clarity and institutional demand are expected to drive innovation in tokenized assets and staking products. However, the market’s trajectory will depend on policy developments and macroeconomic conditions. The current reallocation of capital away from Bitcoin signals a more competitive landscape, with Ethereum’s technological upgrades—such as post-merge efficiency gains—positioning it as a strategic asset for institutional portfolios [1].

Sources:

[1] [Ether emerges as winner after crypto’s 'watershed moment': Bitwise](https://coinmarketcap.com/community/articles/68815c86f06ec312b0b508be/)

[2] [BTCUSD - Ether emerges as winner after crypto’s 'watershed'](https://mx.advfn.com/bolsa-de-valores/COIN/BTCUSD/crypto-news/96486571/ether-emerges-as-winner-after-crypto-s-watershe)

[3] [Platinum Crypto Academy: How to Trade Cryptocurrency in ...](https://www.platinumcryptoacademy.com/)

[4] [Asymmetric shifts funds strategy after investor posts losses on X](https://mx.advfn.com/bolsa-de-valores/COIN/BTCUSD/crypto-news/96486570/asymmetric-shifts-funds-strategy-after-investor-po)