Ethereum News Today: Institutional Money Shifts: Ethereum ETFs Steal Bitcoin’s Spotlight

Ethereum-based exchange-traded funds (ETFs) have recently outperformed their Bitcoin counterparts, attracting significant institutional investment and contributing to a bullish price trajectory for ETH. This trend has been underscored by a sharp divergence in ETF flows, with Ethereum ETFs experiencing substantial inflows, while Bitcoin ETFs recorded consecutive days of outflows in late August 2025.

The momentum began to shift following Federal Reserve Chair Jerome Powell’s Jackson Hole address on August 22, 2025, in which he hinted at potential rate cuts as early as September. The comments spurred a risk-on sentiment, particularly for Ethereum-based ETFs. On that day, most Ethereum ETFs surged by over 14%, with the Bitwise Ethereum Strategy ETF (AETH) and VanEck Ethereum ETF (ETHV) hovering near 52-week highs. The iShares Ethereum Trust ETF (ETHA) alone saw the purchase of more than 150,000 ETH, contributing to over $1 billion in inflows for spot Ethereum ETFs in August [1].

This institutional demand has been a key driver of Ethereum’s recent performance, with its price rising to nearly $4,800 on Bitstamp. The surge added over $150 billion to Ethereum’s market capitalization in a short period. Companies, including Bitmine, are also increasingly adopting Ethereum, with the latter now holding 1 million ETH in its treasury. This adoption mirrors early Bitcoin strategies, indicating a growing preference for Ethereum among institutional investors [1].

The ETF-driven rally has also bolstered Ethereum’s dominance in the broader crypto market, with Coinbase Institutional predicting the onset of an “Altcoin Season” in September. This development is expected to benefit decentralized finance (DeFi) platforms such as Uniswap and Aave. Analysts have raised their price targets for ETH, with Standard Chartered projecting a year-end target of $7,500, citing strong institutional adoption. CoinCodex anticipates ETH averaging around $6,025 in September, with potential peaks above $7,200 by year-end [1].

While Ethereum ETFs have continued to attract capital, the trend has contrasted with Bitcoin ETFs, which experienced a six-day outflow streak between August 19 and August 22, totaling nearly $1.3 billion in redemptions. Ethereum ETFs, however, saw $625 million in new demand during the same period. Fidelity’s FETH and BlackRock’s ETHA were key contributors to this inflow, with combined flows exceeding $240 million on two consecutive days. The shift in investor sentiment was attributed to Ethereum’s stronger short-term momentum, particularly as ETH surged above $4,800 during this period [3].

Ethereum ETFs continued to outperform in early September, with a total of $443.9 million in net inflows on one Monday alone—more than double the inflows for Bitcoin ETFs. BlackRock’s ETHA led this wave with $314.9 million in inflows, followed by Fidelity’s FETH, which saw $87.4 million in new capital. Analysts have attributed this trend to Ethereum’s yield-generating potential, regulatory clarity, and increasing adoption by corporate treasuries [4].

Despite recent price declines, both Ethereum and Bitcoin ETFs have seen continued inflows, indicating sustained institutional confidence in the broader crypto market. While Bitcoin ETFs faced a week of outflows, Ethereum ETFs demonstrated resilience, reinforcing a potential reallocation of capital within the crypto asset class rather than a complete withdrawal. This trend could mark a broader shift in investor preferences, with Ethereum increasingly viewed as a more attractive option for institutional exposure to digital assets [3].

Source: [1] Powell Speech Boosts Ethereum ETFs: What Lies Ahead? (https://finance.yahoo.com/news/powell-speech-boosts-ethereum-etfs-100000301.html) [2] Crypto ETPs post $1.4B losses amid recent Bitcoin, Ether ... (https://cointelegraph.com/news/crypto-funds-1-4-billion-outflows-bitcoin-ethereum) [3] Six-day outflow streak hits Bitcoin ETFs, ETH turns positive (https://cryptoslate.com/insights/six-day-outflow-streak-hits-bitcoin-etfs-eth-turns-positive/) [4] Spot Ethereum ETFs post $444 million in daily inflows, ... (https://www.theblock.co/post/368214/spot-ethereum-etfs-444-million-inflows)