Ethereum News Today: Wealthy Bitcoin Holders Bet Big on Ethereum’s Rising Power

A major Bitcoin whale, holding over $5 billion in Bitcoin, has begun converting its BTC holdings into Ethereum. According to on-chain analytics firm Arkham Intelligence, the whale recently deposited 2,000 Bitcoin—valued at more than $216 million—into Hyperliquid’s exchange and methodically sold it for Ethereum. The address ending in “eCb43” executed this in small batches of 1–1.5 BTC, repeatedly converting Bitcoin into ETH until its BTC position was exhausted. This process was repeated twice, with the whale ultimately transferring more than 42,750 ETH out of its wallet after the trades were completed [1].

This activity is part of a broader trend of institutional and whale capital shifting from Bitcoin to Ethereum. The Ethereum blockchain’s recent upgrades—specifically Dencun and Pectra—have significantly reduced gas fees by 90%, making it more scalable and cost-effective for institutional-grade applications such as decentralized finance (DeFi) and real-world asset (RWA) tokenization [2]. The ETH/BTC ratio hit a notable level of 0.71 in Q3 2025, reflecting the capital reallocation favoring Ethereum’s utility over Bitcoin’s scarcity [2].

Ethereum’s proof-of-stake (PoS) consensus mechanism has also been a major draw for institutional investors, generating $89.25 billion in annualized staking yields. This has led to 31.4 million ETH being staked, representing 26% of the total supply and offering yield rates of 1.9–3.5% [3]. The U.S. reclassification of Ethereum as a utility token via the CLARITY and GENIUS Acts has further boosted institutional adoption, with Ethereum ETFs attracting $27.6 billion in inflows through Q3 2025. BlackRock’s ETHA ETF, for instance, captured $600 million in just two days [2]. These developments have driven Ethereum’s dominance in the digital asset market, with its market share reaching 13.8% as of late 2025, while Bitcoin’s dominance has dipped to 56.6% [4].

The whale’s recent move to Hyperliquid reflects a broader institutional and on-chain accumulation trend. Following the acquisition of $2.5 billion in ETH, the whale immediately sent the tokens for staking, adding over 450,000 ETH to the validator entry queue. This move has been closely watched by crypto traders, as it signals a shift in sentiment from long-term Bitcoin holders toward Ethereum. The Beacon chain contract now holds over 906,000 ETH in withdrawal queues, reflecting the ongoing accumulation [4]. Meanwhile, institutional investors such as BlackRock and Grayscale have also been buying the dip, reinforcing the view that Ethereum is being positioned as both a store of value and a yield-generating asset [4].

Hyperliquid, the platform used for these large ETH transactions, saw a surge in trading volumes, with $3.4 billion traded in a single day. The exchange’s open interest has also climbed above $14 billion, indicating increased speculative and capital deployment activity. The whale activity observed on Hyperliquid, including spot and derivative trading across multiple wallets, underscores the platform’s role as a key venue for Ethereum accumulation and exposure [4]. As regulatory clarity, yield generation, and technological innovation continue to align, Ethereum appears to be solidifying its position as a foundational infrastructure asset in the digital economy.

Source:

[1] Bitcoin Whale Sitting on $5 Billion Dumps More BTC to Buy... (https://finance.yahoo.com/news/bitcoin-whale-sitting-5-billion-190743143.html)

[2] Why Capital Is Abandoning Bitcoin for ETH (https://www.bitget.com/news/detail/12560604942123)

[3] Why Capital is Shifting from BTC to ETH in 2025 (https://www.bitget.com/news/detail/12560604934864)

[4] Whales move from Bitcoin to Ethereum with $2.5B staked (https://www.mitrade.com/insights/crypto-analysis/eth/cryptopolitan-BTCUSDETHUSD-202508261742)