Ethereum News Today: Institutional Capital Favors Ethereum Over Bitcoin in Record $3.75B Inflow Shift

Ethereum's inflows surged to $2.87 billion last week, capturing 77% of the $3.75 billion in total inflows into digital asset investment products, marking the fourth-highest weekly inflow in historical records. The figures highlight a growing institutional appetite for Ethereum, with its year-to-date (YTD) inflows reaching $11 billion, significantly outpacing Bitcoin's YTD inflows. This dominance is further reflected in the proportional share of assets under management (AuM), where Ethereum now accounts for 29% of its AuM, compared to Bitcoin's 11.6% [1]. CoinShares, in its latest report, noted that the inflow momentum pushed total AuM to a record $244 billion on August 13, driven by a recent rally in crypto prices [2].

Ethereum's inflows were largely attributed to BlackRock's iShares Ethereum Trust ETF (ETHA), which alone accounted for over $2.3 billion of the inflow. ETHA is the largest spot Ethereum ETF and now manages over $10 billion in assets, according to SoSo Value data. This performance has been instrumental in driving Ethereum-focused funds to accumulate $11 billion in new capital since the beginning of the year [3]. In contrast, Bitcoin-focused funds recorded inflows of $552 million, a strong figure but significantly lower than Ethereum's record-breaking performance [2]. Analysts suggest that the disparity may indicate a shift in investor interest toward Ethereum, with some viewing it as offering stronger upside potential in the current market cycle [4].

The broader market dynamics also saw significant inflows into other major altcoins. Solana and XRP attracted $176.5 million and $125.9 million respectively, while Sui, Chainlink, and Cardano also saw smaller but notable inflows. Meanwhile, Litecoin and Ton experienced outflows of $0.4 million and $1 million, respectively, during the same period [2]. Regionally, the U.S. accounted for nearly all of the inflows, with $3.73 billion contributing to the total. Smaller inflows were recorded in Canada ($33.7 million), Hong Kong ($20.9 million), and Australia ($12.1 million), while Brazil and Sweden reported outflows of $10.6 million and $49.9 million, respectively [2].

Ethereum’s strong inflow momentum coincided with a broader rebound in digital asset prices. The asset’s price recently reached its highest weekly close in over four years, despite facing liquidity battles between the $3,900 support and $4,400 resistance levels. According to data from Kiyotaka, Ethereum faces a "giant cluster of resting bids stacked all the way down to $3.9K," making it a critical level to monitor for potential reversals and stop hunts [1]. Analysts note that a retest near $3,900 could be a constructive scenario for bulls, as it could flush out weak hands and position the asset for a stronger recovery toward new highs. The four-hour relative strength index (RSI) remains below 50, indicating further downside potential before a potential bullish breakout [1].

Long-term projections for Ethereum remain bullish, with traders and analysts anticipating a potential pullback toward the $3,000–$3,500 range before a rally past $8,000. This projection is supported by record institutional inflows and a favorable technical setup, including a multi-year bullish pennant nearing a potential breakout. Senior ETF analyst at Bloomberg, Eric Balchunas, has highlighted the growing institutional interest in Ethereum, noting that Ether ETFs are becoming a stronger competitor to Bitcoin in the investment space [1].

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[1] ETH charts predict $3.9K retest, then a 100% rally to new ... (https://cointelegraph.com/news/eth-charts-predict-dollar3-9k-retest-then-a-100percent-rally-to-new-highs)

[2] Bitcoin Sees $552M Inflows, But Ethereum's Haul Is 5 ... (https://cryptopotato.com/bitcoin-sees-552m-inflows-but-ethereums-haul-is-5-times-larger/)

[3] Ethereum captures 77% of $3.75 billion inflows while ... (https://cryptoslate.com/ethereum-captures-77-of-3-75-billion-inflows-while-bitcoin-trails-behind/)

[4] Crypto Fund Inflows Surge to $3.75B, Pushing AuM to All- ... (https://cryptodnes.bg/en/crypto-fund-inflows-surge-to-3-75b-pushing-aum-to-all-time-high/)