Ethereum (ETH) has recently seen a remarkable resurgence, inching closer to its $4,878 all-time high (ATH) record after a prolonged period of consolidation. On Tuesday, ETH broke the $4,600 mark for the first time in years, outperforming other cryptocurrencies, including Bitcoin (BTC) and XRP.
Ethereum ETFs Attract $8.2 Billion YTD
This price performance is largely attributed to a significant influx of capital into Ethereum spot exchange-traded funds (ETFs), which recorded a staggering $1 billion in inflows in just a single day—the largest daily inflow to date.
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According to data from Messari, year-to-date inflows into Ethereum ETFs have reached $8.2 billion, accounting for approximately 1.5% of ETH’s market capitalization.
In contrast, Bitcoin spot ETFs saw $178 million in inflows yesterday and $19.4 billion year-to-date, representing only 0.8% of BTC’s market cap. While BTC continues to lead in absolute flows, ETH is attracting nearly double the capital relative to its size, signaling a shift in investor sentiment.
The recent growth in Ethereum’s price is also influenced by favorable regulatory developments. The signing of the GENIUS Act by President Donald Trump has established a new regulatory framework for stablecoins, which could enhance their adoption and integration within financial systems.
Major banks such as Morgan Stanley, JP Morgan, Citigroup, and Bank of America are actively exploring the implementation of dollar-pegged cryptocurrencies, further validating the potential of this market.
Public Companies Embrace ETH
Jake from Messari highlights that this regulatory development and key data points have contributed to the reversal of the bearish outlook on Ethereum’s price witnessed over the past months due to its poor performance.
Approximately $130 billion in stablecoins are currently secured, accounting for roughly 50% of the market share, alongside $7.2 billion in tokenized real-world assets (RWAs) and a growing number of enterprises building on the Ethereum blockchain.
Moreover, 865,000 ETH is now being held by public companies that are adopting Strategy’s (previously MicroStrategy) Bitcoin treasury approach, reflecting a diverse range of institutional buyers converging on Ethereum as a long-term investment.
SharpLink has appointed Ethereum co-founder Joseph Lubin as Chairman and holds over 360,000 ETH. BitMine has transitioned from Bitcoin mining to an Ethereum treasury model, while Bit Digital has completely shifted its focus to Ethereum, accumulating over 120,000 ETH.
Tangible Capital Flows
Institutional investors have also been accumulating ETH at an impressive scale, with approximately 25 million ETH acquired since June. According to the analyst, this accumulation is not driven by retail speculation but reflects a strategic allocation by institutional firms.
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Ultimately, the convergence of stablecoins, tokenization, enterprise infrastructure, and treasury demand is resulting in tangible capital flows, as evidenced by on-chain activity and public company disclosures. As Jake puts it:
What was directional interest is becoming allocation. $ETH isn’t re-rating because crypto wants it to. Wall Street balance sheets are forcing the move.
Featured image from DALL-E, chart from TradingView.com