Ethereum News Today: Ethereum Surges 66% as $10.3 Billion Institutional Inflows Shift Capital from Bitcoin

Ethereum is experiencing a significant surge in capital inflows, outpacing Bitcoin amid growing institutional adoption. According to recent data, Ethereum’s price has risen by 66%, while Bitcoin recorded a much smaller gain of 9.3%[1]. This divergence is being driven by increasing interest in Ethereum-based Exchange-Traded Funds (ETFs), with institutional investors reportedly injecting $10.3 billion into the asset in 2025[1]. Analysts from CryptoQuant have highlighted that this shift represents a capital rotation from Bitcoin to Ethereum rather than a direct withdrawal from Bitcoin holdings, signaling a pivotal shift in crypto asset allocation[1].

The momentum behind Ethereum is largely attributed to the approval of Ethereum ETFs in 2024, which has encouraged institutional participation. A report from NerdWallet indicates that Ethereum’s price has risen by 60% since February 2024, as major financial firms like Fidelity and BlackRock expand their offerings in Ethereum-related products[1]. This surge in institutional activity is further supported by a 17-day inflow streak for Ethereum ETFs in late July 2025, capturing $65.14 million and reinforcing bullish market sentiment[1].

Ethereum’s rise is also being bolstered by its technological advantages, particularly its scalability through Layer 2 solutions and its prominent role in the evolving decentralized finance (DeFi) landscape[1]. However, the market is not without its critics. Skeptics, such as analyst CryptoWhale, have raised concerns about the sustainability of the rally, comparing it to a “house of cards” and warning of potential speculative risks. While these views are not supported by peer-reviewed analysis, Ethereum’s higher volatility—15.63% compared to Bitcoin’s 7.55%—according to PortfoliosLab, suggests increased caution among investors[1].

Some analysts draw comparisons to Bitcoin’s institutional adoption period in 2020-2021, suggesting that Ethereum could see similar institutional support and price appreciation. Analyst forecasts point toward a potential price target of $3,800 for Ethereum by the end of 2025. However, the sustainability of the current capital rotation remains a subject of debate. As the market continues to evolve, investors are advised to closely monitor ETF inflows and on-chain activity for further insights into Ethereum’s trajectory.

[1] Source: [1] Ethereum Outpaces Bitcoin in Capital Rotation Surge

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