Institutional inflows surpass $13B as ETH tests bitcoin’s dominance
Ether (ETH), the world’s second-largest cryptocurrency, is staging a strong comeback after a steep correction earlier this year. According to a new report from Citi, rising demand for spot ETH exchange-traded funds (ETFs) and growing on-chain accumulation are driving renewed momentum, positioning Ether as a serious challenger to Bitcoin’s dominance.
ETF Demand Accelerates
Citi analysts highlighted that cumulative net inflows into spot ETH ETFs have surged past $13 billion, a dramatic rise from just $2.6 billion in April. Institutional adoption has accelerated, with treasury companies now holding nearly $10 billion worth of ETH.
“The sources of demand for Ether ETFs mirror those of Bitcoin’s, though at a somewhat smaller scale. What’s notable is how quickly institutional flows have picked up in recent months,” the report noted.
On-Chain Growth and Supply Squeeze
Alongside ETF demand, on-chain accumulation is rising. Large Ethereum wallets have been moving supply off exchanges, creating what analysts describe as a potential supply squeeze dynamic. This trend is reinforced by improving network activity, signaling growing real-world usage of Ethereum’s blockchain ecosystem.
“The combination of shrinking liquid supply and increasing institutional flows is a powerful backdrop for Ether’s recovery,” one market strategist said.
Ether’s Performance in 2025
After plunging more than 55% earlier in the year, Ether has since rebounded sharply and is now up nearly 30% year-to-date. Unlike previous cycles where Ethereum lagged behind Bitcoin during recoveries, Citi’s report emphasized that ETH is now taking market share rather than ceding it.
This rotation of capital suggests investors are increasingly viewing Ether as more than just a secondary digital asset, but as a core institutional holding.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.