Ethereum-based Spot Exchange-Traded Fund (ETF) inflows reach $332 million, as altcoin movement increases, surpassing Bitcoin trading volume

In a significant move for the cryptocurrency market, Ethereum has overtaken Bitcoin in weekly spot trading volume for the first time in over 13 months. With a trading volume of $25.7 billion last week, Ethereum outperformed Bitcoin's $24.4 billion, according to recent data.

This shift in institutional demand is largely driven by Ethereum's evolving utility layer, scarcity dynamics, enhanced regulatory and compliance readiness, plus ETF product development, which together create a compelling investment case beyond Bitcoin's established role.

One of the key factors contributing to this trend is Ethereum's structural scarcity and supply control. Institutional investors and the Ethereum Foundation now hold over 3.2% of total ETH supply, which enhances its fundamental scarcity, pushing a revaluation in its price.

Ethereum's technological upgrades and scalability improvements also play a significant role. The cryptocurrency is undergoing key blockchain upgrades focused on scalability and compliance features that better suit institutional requirements. This makes Ethereum more attractive for broader adoption, including decentralized finance (DeFi) applications and layered solutions that appeal to financial institutions.

The growing institutional interest in Ethereum is also reflected in the increasing popularity of Ethereum-focused ETFs and similar instruments. Analyst Tom Lee of Fundstrat predicts Ethereum reaching $15,000 to $16,000 in 2025, largely fueled by this institutional flow.

Macroeconomic and policy tailwinds for risk assets, such as expectations of Federal Reserve rate cuts, have fostered a capital rotation from traditional equities to cryptocurrencies, benefiting Ethereum's demand alongside Bitcoin.

Bitcoin, on the other hand, continues to serve as a "digital gold" or reserve asset due to its fixed supply and resilience. However, Ethereum is gaining favor as a programmable blockchain and financial platform asset, creating a diversification effect in institutional portfolios transitioning within crypto.

This week, Ethereum has firmly taken center stage in institutional portfolios. Leading the retreat was Fidelity's FBTC, which alone saw $227.2 million withdrawn. Seven newly created wallets have accumulated 466,253 ETH, worth approximately $1.7 billion, within the past week.

The ETH/BTC ratio might develop in favor of Ethereum, given the current trends and anticipated Pectra upgrade. The upcoming Ethereum network upgrade Pectra aims to expand staking capabilities and long-term scalability. This whale activity and high volume trading suggest forward-looking confidence in Ethereum's staking economy and infrastructure upgrades.

Such inflows place Ethereum ETFs in the strongest position since their U.S. debut. Ethereum spot ETFs recorded $332 million in net inflows on July 23, marking 14 consecutive days of gains. Bitcoin spot ETFs saw $86 million in net outflows on the same day, continuing a three-day slide.

If whale behavior continues, Ethereum may be positioned for further dominance in the market. An analyst at Nansen stated that the accumulation amid high volume rotation implies a positive outlook for Ethereum's dominance in the coming quarters. Ethereum is now starting to be viewed as a competitor to Bitcoin's ETFs, potentially within the next few months.

Macro trends, such as interest rate reductions, softening of inflation rates, and the increasing trend towards tokenization, may further skew positively towards Ethereum. The ETH/BTC volume ratio climbing above 1.0 reflects this capital movement and possibly hints at a sustained trend into the second half of 2025.

In conclusion, the shift in institutional demand from Bitcoin to Ethereum is a significant development in the cryptocurrency market. Ethereum's evolving infrastructure position, scarcity mechanics, and growing institutional adoption, particularly through ETFs, are attracting increasing institutional capital. This multifaceted appeal is prompting institutional investors to increase ETH allocations, reshaping crypto market dynamics for 2025 and beyond.

The cryptocurrency market has witnessed a significant change as Ethereum surpassed Bitcoin in weekly spot trading volume for the first time in over 13 months.
The shift is attributed to Ethereum's evolving utility layer, scarcity dynamics, enhanced regulatory and compliance readiness, and ETF product development, creating a compelling investment case beyond Bitcoin's established role.
One of the key factors contributing to this trend is Ethereum's structural scarcity and supply control, with institutional investors and the Ethereum Foundation holding over 3.2% of total ETH supply.
Ethereum's technological upgrades and scalability improvements are also significant factors, making it more attractive for broader adoption, including decentralized finance (DeFi) applications and layered solutions that appeal to financial institutions.
The growing institutional interest in Ethereum is reflected in the increasing popularity of Ethereum-focused ETFs and similar instruments, with analyst Tom Lee predicting Ethereum reaching $15,000 to $16,000 in 2025.
Bitcoin continues to serve as a "digital gold" or reserve asset due to its fixed supply and resilience, but Ethereum is gaining favor as a programmable blockchain and financial platform asset, creating a diversification effect in institutional portfolios transitioning within crypto.
This week, Ethereum has firmly taken center stage in institutional portfolios, with significant accumulation by whales and new wallets holding approximately $1.7 billion worth of Ethereum.
The upcoming Ethereum network upgrade Pectra aims to expand staking capabilities and long-term scalability, suggesting a positive outlook for Ethereum's dominance in the coming quarters, potentially competing with Bitcoin's ETFs in the near future.

Ethereum-based Spot Exchange-Traded Fund (ETF) inflows reach $332 million, as altcoin movement increases, surpassing Bitcoin trading volume