Why Ethereum is currying favour with investors instead of Bitcoin
- Ethereum is up 55% in the past 30 days.
- ETF inflows for Ethereum have skyrocketed.
- Analysts are predicting higher prices.
It’s finally time for Ethereum.
The second largest crypto is pulling ahead of Bitcoin in the eyes of analysts and institutional investors, as exchange-traded fund inflows soar and corporate treasuries gobble up Ether at a feverish pace.
“ETH continues to outperform, both tactically and structurally,” Joel Kruger, market strategist at LMAX Group, said in comments shared with DL News.
“Firms building ETH-based balance sheets have emerged as meaningful marginal buyers, complementing the flows from ETF issuers.”
In fact, inflows into Ethereum ETFs in the past four weeks have been the “best stretch ever,” Kruger said.
In July alone, Ethereum ETFs took in a staggering $4.7 billion — which doubles its entire load since launch exactly one year ago. Total assets under management now sit at $21 billion, still just 13% of Bitcoin ETFs.
Moreover, of the $1.9 billion in investor money scooping up crypto ETFs in last week, Ether accounted for over 84% of that number.
Another flippening
Ethereum’s rally is starting to flip the narrative.
Bitcoin has hogged headlines all year, buoyed by ETF hype and corporate treasury companies. But with Ethereum up 55% in the past 30 days and Bitcoin dominance slipping to 59%, the balance of power is shifting.
Now, a growing number of analysts and allocators view Ether, and not Bitcoin, as the asset with more upside ahead.
“It’s Ethereum’s turn to see record highs,” Satraj Bambra, CEO of crypto trading platform Rails said in comments shared with DL News.
“We’ll see it double and even hit the $7,000 to $8,000 range.”
‘Michael Saylor effect’
What’ll drive higher prices?
A growing “Michael Saylor effect” around altcoins, with institutional buyers like Sharplink Gaming and BitMine acting as relentless Ether accumulators, Bambra said.
That trend — once the exclusive domain of Bitcoin bulls — now includes Ethereum-focused firms building long-term treasury strategies.
Indeed, corporate treasuries are clambering in. Ethereum holdings across public company balance sheets have climbed to 2.6 million ETH, or roughly 2.1% of total supply.
Coinbase’s inaugural Institutional Crypto Market Positioning report backs up the shift.
The report shows rising speculative interest in large cryptocurrencies — with Ethereum leading the pack. Open interest is up, there’s net accumulation by short-term holders, and orderbook liquidity is gathering strength just above Ethereum’s current price tag.
What about Bitcoin?
Ethereum trades at about $3,790, up 110% in the past three months.
Meanwhile, Geoffrey Kendrick, Standard Chartered’s head of digital assets, forecasts that public companies “may eventually end up owning 10% of all ETH,” which he said will push the cryptocurrency’s price to $4,000 this year.
Pedro Solimano is DL News’ Buenos Aires-based markets correspondent. Got at a tip? Email him at
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