$18B Floods Into Crypto: Ethereum Starts Eating Bitcoin’s Lunch

Digital asset markets just saw their biggest capital tsunami since the last bull run—$18 billion crashing into crypto coffers. But here's the twist: Ethereum's gaining ground on Bitcoin like a DeFi greyhound chasing a legacy tortoise.

ETH's Institutional Allure

While Bitcoin still wears the crown, smart money's increasingly hedging bets. Institutional flows show ETH products capturing mindshare—and walletshare—as TradFi finally grasps that blockchains can do more than just HODL.

The $18B Elephant in the Room

That staggering inflow figure would make any hedge fund manager blush (if they weren't busy shorting the same assets they're recommending to clients). The liquidity gusher suggests crypto winter thawed faster than a Celsius bankruptcy proceeding.

What's driving the frenzy? Probably not fundamentals—this is crypto after all. More likely a mix of FOMO, ETF approvals, and that age-old financial alchemy where greater fools transmute hype into gold.

Bitcoin Still Leads, But Inflows Begin to Slow

Bitcoin remains the dominant asset in the crypto investment space, pulling in $790 million in inflows over the past week. However, this figure is a noticeable drop from the $1.5 billion weekly average seen over the past three weeks.

This slowdown may point to investor caution as Bitcoin approaches its all-time high of over $111,000. With many traders likely booking profits or hesitating to buy at elevated levels, inflows have started to stabilize.

Despite this, bitcoin still accounts for the majority of digital asset fund flows. But the recent trend hints at a possible shift in sentiment as the market begins to eye other opportunities.

Ethereum Sees Strong Momentum With $226M Inflows

While Bitcoin’s pace may be moderating, Ethereum continues to quietly gain momentum. Last week, Ethereum recorded $226 million in inflows, marking its 11th consecutive week of positive fund flows. In total, Ethereum has attracted around $2.85 billion during this period.

What’s more notable is that, on a percentage basis, Ethereum inflows averaged 1.6% of assets under management (AUM) per week. In comparison, Bitcoin’s weekly average sits at 0.8%. This higher rate of inflow could indicate increasing institutional interest in Ethereum’s broader utility, particularly in DeFi, LAYER 2 solutions, and real-world asset tokenization.

As Ethereum prepares for further ecosystem growth, analysts suggest it could outshine Bitcoin in the coming weeks if this trend holds.

Regional Breakdown Reveals Diverging Sentiment

Geographically, the United States continues to dominate crypto inflows. U.S.-based funds accounted for nearly $1 billion of the total inflows last week, underlining the strong interest driven by spot Bitcoin ETFs and a generally favorable institutional environment.

In Europe, Germany and Switzerland added $38.5 million and $33.7 million respectively. Meanwhile, Canada and Brazil experienced outflows, with Canada seeing $29.3 million exit and Brazil recording a $9.7 million decline.

This regional divergence highlights the varied institutional appetite across global markets, influenced by regulatory clarity, local macro conditions, and investor preferences.

Crypto Inflows Push Total Assets to $188 Billion

CoinShares also reported that total assets under management (AUM) in crypto investment products reached a record $188 billion. This milestone is largely due to continued inflows and supportive price movements.

Weekly trading volumes across all crypto funds remained stable at $16.3 billion, which aligns closely with the average volumes seen so far in 2025.

According to James Butterfill, Head of Research at CoinShares, these figures reflect “robust institutional participation” in crypto markets despite seasonal slowdowns and macro uncertainty.

What This Means for the Market

The sustained streak of crypto inflows is being closely watched by analysts and investors alike. As interest in altcoins increases and Ethereum gains proportionally more inflows than Bitcoin, some are beginning to speculate whether a broader altcoin season may be on the horizon.

If Ethereum’s current pace continues, it could attract more attention from asset managers and funds looking to diversify beyond Bitcoin. Layer 2 scaling solutions, real-world asset integrations, and upcoming technical improvements could all serve as catalysts for Ethereum’s further growth.

Meanwhile, Bitcoin remains firmly entrenched as the dominant digital asset but may face headwinds if it fails to break convincingly above the $111,000 mark.

Looking Ahead: Momentum or Caution?

As crypto inflows remain elevated, next week’s CoinShares report will be key in determining whether this trend continues—or if investor sentiment begins to shift. The current rotation hints at subtle changes in institutional strategies, especially as macroeconomic uncertainties such as inflation, interest rate cuts, and regulatory developments loom large.

Whether Ethereum’s quiet rise leads to a more pronounced market reshuffle is yet to be seen. For now, crypto investors are keeping a close eye on flow trends as a signal for where the next big MOVE could emerge.