Ethereum ETF Demand Surges: Outshines Bitcoin for 3 Straight Days

Move over, Bitcoin—Ethereum's stealing the spotlight.

ETF inflows for ETH just flipped BTC for the third consecutive day, marking a potential shift in institutional appetite. Wall Street's new shiny toy? Maybe. But those gas fees? Still a punchline.

Here's the kicker: while Bitcoin maximalists hyperventilate about store-of-value narratives, Ethereum's quietly building the infrastructure for everything from DeFi to tokenized real estate. The smart money's voting with its wallet—even if half these funds are just hedging their bets.

One cynical take? TradFi's late as usual—piling into ETH after retail already did the heavy lifting. Classic.

Ethereum Dominates ETF Flows

According to Farside Investors data, Ethereum ETFs attracted $704 million in inflows on Wednesday, compared to just $86.7 million for Bitcoin ETFs. This marks the third consecutive day Ethereum has outpaced the market leader in ETF flows.

Over the three-day stretch, ETH products have taken in $2.2 billion, following Monday’s record-breaking $1 billion single-day inflow. In contrast, Bitcoin ETFs have captured $330.9 million during the same period.

This shift underscores how institutional capital is increasingly diversifying beyond Bitcoin, with Ethereum now commanding a significant share of new inflows.

Institutional Appetite and Regulatory Support

Institutional demand is being driven not just by market momentum but also by regulatory tailwinds. Peter Chung, head of research at Presto Labs, noted that Ethereum has benefited from recent developments such as the GENIUS Act and SEC Chair Paul Atkins’ “Project Crypto” speech, which voiced support for decentralized finance (DeFi) adoption by institutions.

With regulators signaling a more favorable environment for Ethereum-based products, asset managers are finding it easier to start and market ETH investment vehicles to their clients.

Price Surge Nears All-Time Highs

Ethereum’s strong ETF inflows have translated directly into price gains. The cryptocurrency is now trading around $4,775, up more than 60% over the past month, according to CoinGecko data. This places ETH within 4% of its November 2021 record near $4,900.

The rally has also put pressure on bearish traders. Data from CoinGlass shows that Ethereum short positions worth $127.41 million were liquidated in the past 24 hours alone, as rising prices forced Leveraged sellers to exit.

Supply and Demand Imbalance

One of the most bullish factors for Ethereum right now is its tightening supply. Since the September 2022 merge upgrade, the Ethereum network has issued only 450,000 ETH in total.

By contrast, monthly ETF inflows now average 2.3 billion dollars — roughly equivalent to 500,000 ETH — meaning institutional buyers are absorbing new supply faster than it is created. This imbalance is placing sustained upward pressure on prices, as available coins on the open market become scarcer.

Price Targets Raised by Major Banks

The surge in demand has prompted bullish revisions from major financial institutions. Standard Chartered recently increased its ethereum price target to $7,500 by 2025 and $25,000 by 2028, up from its previous $4,000 forecast.

The bank cited “institutional buying at nearly double the pace of bitcoin accumulation during peak periods” as the main reason for its aggressive outlook.

Market sentiment supports this Optimism — prediction platform Myriad Markets shows an 86.9% probability that Ethereum will hit $5,000 by January 1, 2026.

Treasury Companies Fueling the Buying Spree

Large corporate treasury entities are also playing a pivotal role in the rally. Digital asset treasury firms are purchasing Ethereum at an unprecedented rate, further constraining supply.

A key example is BitMine, the Ethereum-focused mining and investment company led by Tom Lee. This week, BitMine revealed it was increasing its fundraising target for ETH purchases by $20 billion, bringing its total planned raise to $24.5 billion. The expansion marks a massive leap from the $4.5 billion already offered in its initial common stock sale.

These large, consistent purchases by treasury companies ensure that demand remains elevated even during periods of retail market slowdown.

Bitcoin Still Strong, but Momentum Shifts

While Bitcoin remains the largest cryptocurrency by market cap and has enjoyed its own ETF-driven bull run, the latest numbers show Ethereum temporarily holding the upper hand in attracting institutional capital.

Bitcoin ETFs still boast a massive $54 billion in total inflows since start, but Ethereum’s recent surge highlights that Wall Street’s interest is broadening beyond the flagship crypto to include other altcoins with unique value propositions.

Conclusion: Ethereum’s Moment in the Spotlight

The combination of surging ETF inflows, regulatory support, constrained supply, and aggressive buying from both institutions and corporate treasuries has created a perfect storm for Ethereum.

With prices within striking distance of all-time highs and major banks projecting significant upside, Ethereum’s momentum could extend well into 2025 — especially if ETF inflows continue to outpace those of Bitcoin.

For now, Ethereum’s dominance in the ETF arena underscores a broader shift in the crypto investment landscape, where altcoins are beginning to challenge Bitcoin’s long-held position as the primary gateway for institutional capital.