Ethereum ETF is aggressively attracting capital, and Bitcoin's dominant position is facing a historic challenge!

** The latest data **shows that since the U.S. SEC approved the spot Ethereum ETF, institutional funds have been pouring into related products at an average rate of $350 million per day. BlackRock's (BlackRock) ETHE fund scale surpassed $5 billion in just two weeks. Meanwhile, the inflow of funds into the Bitcoin ETF has significantly slowed down, sparking intense discussions in the market about the restructuring of the cryptocurrency market - Is Ethereum disrupting Bitcoin's 'digital gold' hegemony?

The inflow of funds into Ethereum ETFs is rapidly increasing, challenging Bitcoin's long-term dominance in the cryptocurrency market.

Stunning Reversal of Capital Flow

Ethereum ETF inflows surpass Bitcoin

According to data from CoinMarketCap, ETH led the ETF fund inflows for the second consecutive day, with Bitcoin's inflow at $363.45 million, while Ethereum attracted $402.5 million in inflows. The total inflow for cryptocurrency ETFs reached $766 million, indicating that institutional focus may be shifting. Key findings: The inflow rate for the Ethereum ETF is three times that of the Bitcoin ETF during the same period, and the holdings of BlackRock and Fidelity now account for 2.1% of the circulating supply. The era of Bitcoin dominance ends: BTC's market cap share has dropped from 55% to 51%, while ETH's share has risen to 18% (only 12% in 2023).

Recent data shows that daily inflows into Ethereum ETFs have reached a new high, driving a significant increase in Ethereum's price. The unprecedented inflows into the U.S. spot Ethereum ETF are the main factor behind this price surge.

Ethereum investment funds and company reserves are increasing. Enterprises focusing on Ethereum currently hold ETH worth $5.3 billion and are purchasing tokens at a rate 36 times that of daily ETH production. In addition, Ethereum investment funds have maintained positive cash flow for 12 consecutive weeks, with the most recent week recording an inflow of $996 million.

For example, companies such as Bit Digital, GameSquare, and SharpLink Gaming are actively increasing their Ethereum reserves, a move that aligns with their long-term balance sheet planning. BitMine Immersion Technologies, led by Fundstrat's Tom Lee, also revealed that it currently holds over $500 million in ETH in its corporate treasury.

Ethereum ETF inflows gradually surpass Bitcoin. Although the inflows into the Ethereum ETF have shown a trend of surpassing in recent weeks, the gradually increasing daily inflow share reflects a structural change in investor behavior.

Since the launch of the Ethereum ETF, total inflows have exceeded $5.5 billion, and since mid-April, inflows into Ethereum investment products alone have exceeded $3.3 billion.

In practice, investors are now incorporating ETH ETFs into their balanced cryptocurrency portfolios, but Bitcoin funds still account for the majority of institutional capital.

Market sentiment changes and future challenges

Recently, the inflow of funds into Ethereum ETFs on certain trading days has exceeded that of Bitcoin, indicating a shift in market sentiment. With enhanced staking support, regulatory clarity, and increased institutional adoption, Ethereum possesses strong fundamental support. However, Bitcoin's dominance in the ETF space remains solid. For Ethereum to completely surpass Bitcoin, its fund inflows need not only to match Bitcoin but also to maintain a long-term lead.

Despite some progress made by Ethereum ETFs, they still face several challenges, primarily including how to position them within institutional portfolios, enhance volatility management capabilities, and better leverage market support.

Regulatory changes may become a catalyst. Regulatory changes may provide further momentum for Ethereum. The passage of the CLARITY Act and the anticipated SEC approval for the addition of staking features in ETFs could further enhance Ethereum's market appeal.

The growth of inflows into Ethereum ETFs indicates a rising interest from institutional investors in ETH, with its inflows gradually surpassing those of Bitcoin. Although Bitcoin currently remains dominant, Ethereum is gradually demonstrating its competitiveness with the support of infrastructure and market sentiment. If the regulatory environment further improves, Ethereum may capture a larger market share in the future.

A war concerning the soul of the crypto world

The competition between Ethereum and Bitcoin is essentially a confrontation between two paradigms: "financial infrastructure" and "digital gold." Regardless of the outcome, 2025 will become a crucial watershed in the history of cryptocurrency due to the emergence of the Ethereum ETF.