Ethereum News Today: Ethereum Surpasses Bitcoin as Institutional Confidence Shifts

Ethereum continues to attract significant institutional interest, outperforming Bitcoin in recent market trends. U.S. spot Ethereum ETFs recorded $443.9 million in net inflows on August 25, nearly double the inflows of Bitcoin ETFs, which totaled $219 million on the same day [5]. BlackRock’s ETHA and Fidelity’s FETH led the inflows, with ETHA alone attracting over $314.9 million, representing more than 70% of the day’s Ethereum ETF flows [5]. This momentum has lifted total Ethereum ETF assets under management to $28.8 billion, with cumulative inflows reaching nearly $13 billion since the product’s launch earlier this year [5].

The surge in Ethereum ETF inflows reflects a broader shift in institutional sentiment. Ethereum’s role in the stablecoin ecosystem has grown significantly, with Bernstein analysts estimating that nearly 52% of the stablecoin supply resides on the Ethereum network [1]. This has been further bolstered by the passage of the GENIUS Act, which created a legal framework for stablecoins and reinforced Ethereum’s position as the dominant blockchain for stablecoin settlements [2]. According to James Butterfill, head of research at CoinShares, Ethereum is increasingly becoming the backbone of large stablecoin transactions [2].

Corporate treasuries have also been a key driver of Ethereum’s recent rally. Companies such as SharpLink Gaming, BitMine Immersion Technologies, and EthZilla have added Ethereum to their digital asset holdings, mimicking the strategy of MicroStrategy, which has been aggressively accumulating Bitcoin since 2020 [2]. These corporate purchases have helped support Ethereum prices, particularly as the market digested weaker Bitcoin performance and outflows from Bitcoin ETFs [1]. In fact, Bitcoin ETFs experienced over $1.18 billion in outflows last week, their worst week since March [1].

Ethereum’s economic structure further distinguishes it from Bitcoin. Unlike Bitcoin’s inflationary issuance model, Ethereum’s design typically results in neutral or even negative net issuance of new coins, constraining supply even as demand rises [2]. This has been supported by Ethereum’s transition from Proof of Work to Proof of Stake, which has improved scalability and reduced energy consumption. Additionally, the growing maturity of Ethereum’s decentralized finance (DeFi) ecosystem has contributed to its appeal. Ethereum’s DeFi ecosystem now supports $127 billion in value, with stablecoins and tokenized real-world assets accounting for much of that growth [3].

BlackRock’s iShares Ethereum ETF is also rapidly gaining ground in terms of custody. With holdings at 3.6 million ETH, it is now just 200,000 ETH away from surpassing Coinbase as the second-largest Ethereum custodian [6]. This shift reflects a broader trend of institutional investors favoring regulated ETFs over traditional exchange custody, further tightening the supply of ETH on major trading platforms [6]. Analysts suggest that this tightening supply, combined with strong ETF inflows, positions Ethereum for continued outperformance in the coming months [7].

Source: [1] Ethereum rally continues as recent crypto softness puts Bitcoin price at inflection point (https://finance.yahoo.com/news/ethereum-rally-continues-as-recent-crypto-softness-puts-bitcoin-183003036.html) [2] Ether, Ethereum's coin, breaks 2021 all-time high (https://www.axios.com/2025/08/24/ether-all-time-high) [3] Ethereum's $127bn DeFi ecosystem is maturing (https://finance.yahoo.com/news/ethereum-127bn-defi-ecosystem-maturing-145604530.html) [5] ETH ETFs Haul $443.9M Crushing Bitcoin with 2x Inflows (https://finance.yahoo.com/news/eth-etfs-haul-443-9m-150015899.html) [6] BlackRock BTC ETF Balance Tops Coinbase, Is ETH Next? (https://cointelegraph.com/news/blackrock-btc-etf-balance-flips-coinbase-is-eth-next) [7] Spot Ethereum ETFs See $455 Million Inflows, Bitcoin Trails Behind (https://coincentral.com/spot-ethereum-etfs-see-455-million-inflows-bitcoin-etfs-trail-behind/)