Ethereum News Today: Ethereum Surges 53% on Strong Institutional Inflows as Bitcoin Gains 14%

Ethereum’s strong performance in July 2025 has been attributed to significant institutional inflows rather than capital being reallocated from Bitcoin. On-chain data shows that Ethereum has surged by 53%, rising to a price of $3,850 from around $2,400 in mid-July, while Bitcoin has also gained 14% to a new all-time high of over $123,000. This suggests both cryptocurrencies are benefiting from parallel accumulation rather than a zero-sum dynamic [3].

A key driver of Ethereum’s rally has been the surge in investment through Ethereum-related ETFs and corporate treasuries. BlackRock’s Ethereum ETF alone attracted $132 million in a single day, reflecting a broader trend of inflows into the asset. These figures outpace the weekly inflow of $1.59 billion recorded in July, the second-highest on record for Ethereum products. Year-to-date inflows have already surpassed the total for 2023, highlighting strong institutional confidence in the ecosystem [3].

The U.S. SEC has also played a role in shaping Ethereum’s institutional adoption. Recent regulatory measures have cleared the way for new financial products, with major firms like BlackRock and Fidelity announcing plans for Ethereum-based offerings. Regulatory clarity, combined with ongoing network upgrades, has enhanced Ethereum’s appeal among institutional investors [1].

On-chain metrics further reinforce the narrative that Ethereum’s rally is driven by fresh capital. The Bitcoin Realized Capitalization, a measure of the total acquisition cost of all BTC in circulation, has reached $1.018 trillion as of July 25, indicating that capital invested in Bitcoin is increasing rather than being redeployed elsewhere [3]. Meanwhile, Ethereum whale activity has surged, with top holders acquiring over $840 million in ETH within 48 hours, aligning with broader institutional inflows [7].

Standard Chartered Bank’s Geoff Kendrick, Head of Digital Assets Research, has noted that institutional Ethereum holdings could reach 10% of the total supply—valued at $45.5 billion—by year-end 2025, assuming current accumulation trends persist. This projection reflects broader market sentiment that Ethereum’s structural advantages, including scalability improvements and a robust developer ecosystem, are attracting long-term capital [1].

Ethereum’s market capitalization has increased by $150 billion in July, driven by sustained institutional interest and a growing appetite for exposure to the asset class. This contrasts with Bitcoin ETFs, which have seen net outflows during the same period [3].

Analysts suggest that the current dynamics signal a potential realignment in crypto investment strategies. While Bitcoin remains in a consolidation phase, Ethereum’s strong on-chain activity and institutional adoption indicate a more aggressive accumulation pattern. This trend could influence broader market sentiment and shape the future of crypto as a strategic asset class for institutional portfolios [2].

Source: [1] Ethereum's Rally Driven By Fresh Inflows, Not A Rotation... (https://finance.yahoo.com/news/ethereums-rally-driven-fresh-inflows-130617785.html)

[2] Why Ethereum is currying favour with investors instead of Bitcoin (https://www.dlnews.com/articles/markets/why-investors-are-rotating-out-of-bitcoin-into-ethereum/)

[3] BTC Capital Rotation or Fresh Fund Inflows (https://cryptopotato.com/btc-capital-rotation-or-fresh-fund-inflows-whats-really-fueling-eths-rally/)

[6] Three reasons why Ethereum rally to $10K dream is alive ... (https://cryptonews.net/news/ethereum/31348747/)

[7] Ethereum whale wallets rise as Bitcoin whales decline (https://www.mexc.com/news/ethereum-whale-wallets-rise-as-bitcoin-whales-decline-is-the-altcoin-rotation-underway/62900)