Ethereum News Today: Institutional Hunger Drives Ethereum’s ETF Surge Over Bitcoin

Ethereum spot ETFs have seen a significant surge in inflows over the past five trading days, outpacing Bitcoin ETFs by a wide margin. On Thursday alone, Ethereum ETFs attracted $640 million in investments, according to Farside Investors data. BlackRock’s ETHA and Fidelity’s FETH were the top performers, absorbing $520 million and $57 million respectively. This marks the fifth consecutive day of Ethereum ETF inflows surpassing those of Bitcoin, with cumulative inflows reaching $3.37 billion compared to $966 million for Bitcoin ETFs over the same period [1].

The growing interest in Ethereum is being attributed to aggressive corporate accumulation, which has reportedly led to a tightening supply of the asset on exchanges and over-the-counter markets. Erhan Korhaliller, founder of EAK Digital, cited an unprecedented institutional buildup of Ethereum as a primary driver of the recent inflows. He noted that corporate entities are increasingly issuing stock to accumulate ETH for their treasuries, exacerbating the supply squeeze [1].

Korhaliller emphasized that the demand for Ethereum stems from structural rather than cyclical factors, pointing to the cryptocurrency’s unique advantages over Bitcoin. Ethereum’s support for smart contracts allows it to serve as a platform for a wide array of decentralized applications. Additionally, Ethereum offers staking and yield-generating features that Bitcoin does not. These characteristics, coupled with a broader range of earning opportunities, make Ethereum more attractive to institutional investors [1].

Market observers are cautious, however, about the sustainability of the current trend. Korhaliller warned that several factors could reverse the flow, including a potential market correction in September and profit-taking by retail investors. However, he noted that institutional demand could potentially absorb this selling pressure. If the trend continues, he forecasts Ethereum could reach $10,000 in this market cycle [1].

Kelvin Koh, co-founder and CIO at Spartan Group, views the shift in inflows as the beginning of a broader rotation into Ethereum. He pointed to factors such as the strength of the stablecoin and real-world asset narratives, as well as continued accumulation by digital asset treasury firms like SharpLink Gaming and BitMine. These developments, according to Koh, reinforce the short-term bullish outlook for Ethereum’s price [1].

Source: [1] Ethereum ETF Inflows Outpace Bitcoin ETFs for Fifth Straight (https://finance.yahoo.com/news/ethereum-etf-inflows-outpace-bitcoin-175224466.html)