Ethereum News Today: Institutions Stake Ethereum as Bitcoin Stalls in Late-Cycle Doldrums

Ethereum (ETH) is outperforming Bitcoin (BTC) amid shifting market dynamics, with on-chain data and institutional activity pointing to a growing rotation of capital into the second-largest cryptocurrency. As BTC stalls near $113,000, ETH has shown resilience, driven by large net outflows from exchanges and rising institutional demand. On-chain analytics indicate that ETH’s exchange balances have been declining, suggesting that coins are moving into staking, cold storage, or institutional custody. This tightening of available supply on the open market reinforces a bullish narrative for Ethereum, contrasting with BTC’s more stagnant price action and flat exchange reserves [1].

Recent data from StrategicETHReserve reveals that 69 institutions hold a total of 4.1 million ETH, valued at approximately $17.6 billion—equivalent to 3.39% of the total ETH supply. BitMine Immersion Technologies leads with 1.5 million ETH, while SharpLink Gaming holds 740,800 ETH. The Ethereum Foundation and Ether Machine also maintain significant holdings. This growing institutional interest is further reflected in the Ethereum-focused U.S. spot ETFs, which now hold 6.7 million ETH, or 5.5% of the total supply. These ETFs highlight the deepening institutional participation in Ethereum and the broader adoption of digital assets in traditional finance [2].

The U.S. Securities and Exchange Commission (SEC) has delayed decisions on several Ethereum-related ETF applications, including a proposed fund by Trump Media and Technology Group. The regulator has also postponed a request to add staking to the 21Shares Core Ethereum ETF, reflecting ongoing regulatory scrutiny in the crypto space. Despite these delays, analysts like Eric Balchunas of Bloomberg suggest that regulatory hurdles will likely be resolved by October, enabling a wave of approvals for new crypto ETFs. This delay, however, has raised questions about the timeline for institutional adoption of staking features within ETF structures [3].

On the exchange-traded fund (ETF) front, 13 spot Ethereum ETFs are now active in the U.S., with fees ranging from 0.15% to 2.50%. The Grayscale Ethereum Mini Trust (ETH) is the lowest-fee option at 0.15%, while the Grayscale Ethereum Trust (ETHE) remains the most expensive at 2.50%. The approval of these ETFs has already catalyzed a price surge in Ethereum, with the token rising over 80% since February 2024. Analysts suggest that the introduction of staking capabilities to existing ETFs could further boost institutional interest and investor returns, turning Ethereum ETFs into both growth and income-generating vehicles [4].

Capital flow patterns also suggest a broader shift in the crypto market. Bitcoin’s weakening demand, as measured by apparent demand figures and ETF inflows, has created space for altcoins to gain traction. Ethereum’s perpetual futures volume dominance has reached a new all-time high, surpassing that of Bitcoin. This shift is consistent with historical patterns observed during late-stage bull cycles, where capital often rotates from Bitcoin to altcoins. Ethereum’s technical indicators, including a potential recovery to $4,788, further support its favorable position in the current market environment [5].

While Bitcoin shows signs of entering a late-cycle phase—marked by profit-taking, weakening inflows, and reduced speculative momentum—Ethereum continues to attract both retail and institutional investors. This divergence is evident in the performance of major altcoins, including BNB, Solana, and Cardano, which have all seen significant gains relative to BTC. Analysts caution, however, that any upcoming altcoin season is likely to be selective, favoring projects with strong fundamentals and real-world utility [6].

Source:

[1] Bitcoin Weakness Vs. Ethereum Strength: On-Chain Data (https://www.mitrade.com/insights/news/live-news/article-3-1063266-20250823)

[2] Institutional Interest in Ethereum in the Crypto Ecosystem Reaches Record Level (https://www.mexc.com/en-GB/news/institutional-interest-in-ethereum-in-the-crypto-ecosystem-reaches-record-level-heres-the-latest-data/69584)

[3] SEC Punts on Trump Media Bitcoin and Ethereum ETF (https://finance.yahoo.com/news/sec-punts-trump-media-bitcoin-013104143.html)

[4] 13 Ethereum ETFs and Their Fees + Holdings (https://www.nerdwallet.com/article/investing/ethereum-etfs)

[5] Bitcoin signals late-stage bull cycle as Ethereum gains (https://www.fxstreet.com/cryptocurrencies/news/is-the-crypto-bull-market-cycle-nearing-its-late-phase-glassnode-analysts-weigh-in-202508220230)

[6] Market Shifts: Altcoins Surge as Bitcoin Slows (https://www.cointribune.com/en/market-shifts-altcoins-surge-as-bitcoin-slows/)