Ethereum News Today: Institutional Capital Favors Ethereum Over Bitcoin in Historic Rebalancing

Ethereum’s native token, ETH, reached a new all-time high on August 23, 2025, surpassing its previous record of $4,878.26 set in November 2021. The price briefly traded above $4,880 before retreating slightly to around $4,872 at the time of publication. This surge followed remarks by Federal Reserve Chair Jerome Powell during the Jackson Hole Economic Symposium, where he indicated the central bank may consider a 25-basis point rate cut in September. The dovish signals from the Fed, combined with a broader shift in institutional interest toward Ethereum, have fueled the asset’s upward trajectory. Ethereum’s price has gained over 40% in 2025, outpacing Bitcoin’s performance in the year-to-date period, while its market capitalization now stands at approximately $555 billion.

The rally has been supported by renewed inflows into Ethereum-based exchange-traded funds (ETFs). Following the U.S. Securities and Exchange Commission’s (SEC) approval of spot Ethereum ETFs in July 2024, these funds have accumulated over $20 billion in assets under management, led by BlackRock’s ETHA. On August 21 alone, Ethereum ETFs attracted $287.6 million in net inflows after a brief period of outflows. These trends reflect growing institutional confidence in Ethereum as both a yield-bearing and inflation-hedging asset. Additionally, corporate treasury adoption of Ethereum has accelerated, with firms like BitMine, SharpLink Gaming, and others collectively holding nearly 3% of the total Ethereum supply, valued at around $19 billion.

The shift in capital flow is evident in the broader crypto market as well. Ethereum’s inflows have outpaced Bitcoin’s, with Ethereum-focused products attracting $2.86 billion in the week ending August 15, compared to Bitcoin’s $552 million inflows. This marks a significant reallocation of institutional capital from Bitcoin to Ethereum and, increasingly, to other altcoins. As of August 23, Bitcoin’s market share had dipped below 60% for the first time in four months, signaling a transition toward a more diversified crypto market. Ethereum’s expanding role as a foundational infrastructure for decentralized finance (DeFi) and smart contracts has also contributed to its appeal, with analysts suggesting the network may serve as the backbone for future digital commerce.

The institutional buying frenzy has been further amplified by regulatory developments, including the approval of the Genius Act in Washington, which allows traditional financial institutions to issue stablecoins on blockchain platforms. As of August 23, more than $143 billion in stablecoins were issued on Ethereum, according to DefiLlama data. This regulatory clarity, along with the SEC’s Project Crypto initiative, which aims to reduce ambiguity around crypto asset classifications, has bolstered investor confidence in the ecosystem.

Analysts have adjusted their price projections for Ethereum based on current momentum. Standard Chartered, for instance, has raised its year-end price target from $4,000 to $7,500 and extended its forecast to $25,000 by 2028. Some market participants, including prominent figures like Arthur Hayes of BitMEX, believe the price could reach as high as $20,000 in the current cycle. These bullish expectations are grounded in the combination of strong institutional inflows, growing treasury adoption, and the continued development of Ethereum’s underlying technology.

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