In Brief
- Ethereum has significantly outperformed Bitcoin recently. In the past month, Ethereum gained 67% while Bitcoin only increased by 18%.
- The inflow gap between Ethereum and Bitcoin ETFs is rapidly closing. ETF holdings for Ethereum are now just 1.6 times the inflow seen for Bitcoin, compared to a 45:1 ratio four months ago.
- Analysts anticipate significant growth for Ethereum, with some predicting it could surpass the $8,000 mark by the end of the year.
Ethereum has dramatically rebounded to become one of the best-performing digital assets in recent months.
This surge has placed U.S.-based Ethereum ETF investors ahead of Bitcoin ETF holders, according to expert analysis and inflow data.
“Purchases from U.S.-based Ethereum ETFs have outperformed Bitcoin’s,” explained CryptoQuant’s Head of Research, Julio Moreno.
He noted a substantial increase in the Ethereum-to-Bitcoin ETF holdings and spot trading volume ratio since April.
“Rising institutional interest—especially around digital asset trusts—is a primary reason,” commented Amber Group’s Head of Flow Trading, Delory Fong.
While Bitcoin still leads Ethereum year-to-date in performance, the past month highlights Ethereum’s momentum, with a 50% surge relative to Bitcoin, pushing it towards a six-month high.
Ethereum’s growth is also evident in record ETF inflows. Spot Ethereum-based ETFs recorded a $2.18 billion inflow.
This contrasts sharply with the April gap where Bitcoin ETF inflows were nearly 45 times Ethereum’s inflows. Current data shows the gap has narrowed to just 1.6 times.
“The short-term narrative is on Ethereum,” stated Sean Dawson, head of research at on-chain options platform Derive.
Key drivers cited include companies adopting Ethereum treasury strategies, similar to MicroStrategy, and large transactions like Dynamix Corporation’s merger with The Ether Machine.
Dawson further noted regulatory developments, such as the recently signed GENIUS Bill, combined with these capital flows, creating a positive “confluence” for Ethereum.
Analysts project continued upward momentum, with Dawson concluding that “it would not be unreasonable to expect Ethereum to soar past $8,000 by Christmas.”
