Ethereum Staking Reaches All-Time High as Institutional Investors Rotate Capital from Bitcoin

Ethereum is gaining traction as institutional investors begin to diversify their portfolios away from Bitcoin, according to analysts at B2BINPAY. This shift is evident as Ethereum's staking balance reached an all-time high of 34.65 million ETH, representing 28.7% of the total circulating supply. This milestone coincided with an 8% increase in ETH’s price on the same day, June 10. Additionally, Ethereum exchange-traded funds (ETFs) recorded their 15th consecutive day of net inflows, totaling $837 million.

Analysts suggest that this data indicates institutions may be preparing to rotate capital from Bitcoin into Ethereum. This shift could significantly increase ETH’s market dominance and support gains in other altcoins as well. For instance, on June 3, BlackRock sold $130.4 million worth of Bitcoin, while this week alone, over $100 million in ETH purchases were recorded, signaling a potential rotation of capital into Ethereum by institutional investors.

According to B2BINPAY analysts, Ethereum has the potential to build further bullish momentum. As long as ETH holds above the $2,320 support level, a breakdown below $2,000 is unlikely. However, further upside remains in focus. If Ethereum follows a bullish path and breaks through the $2,793 resistance, a move toward the $3,500-$4,000 range becomes a very realistic scenario, according to the analysts' forecast.

Ethereum's appeal to institutional investors lies in its ability to offer staking income to holders. Unlike Bitcoin, which relies solely on price appreciation to generate returns, ETH provides yield, allowing investors to earn passive income without needing to sell their holdings. This feature makes Ethereum an attractive option for institutions looking to diversify their portfolios and generate additional returns.