Ethereum ETF is strongly attracting capital, challenging Bitcoin's long-term dominance.

The inflow of funds into Ethereum ETFs is rapidly rising, challenging Bitcoin's long-term dominance in the Crypto Assets market. Ethereum recorded a strong rise in the past 24 hours, attracting increasing attention from institutional investors. The price of Ethereum rose 9.92% in a single day, currently reported at $3,703.03, demonstrating its strong market performance.

Ethereum ETF inflows surpass Bitcoin According to CoinMarketCap data, ETH led the ETF inflows for the second consecutive day, with Bitcoin attracting $363.45 million, while Ethereum attracted $402.5 million in inflows. The total inflow for Crypto Assets ETFs reached $766 million, indicating a potential shift in institutional focus.

Recent data shows that daily capital inflows into the Ethereum ETF have reached new highs, driving a significant rise in the price of Ethereum. The unprecedented capital inflows into the US spot Ethereum ETF are the main factor behind this price surge.

Ethereum investment funds and company reserves increase The enterprise treasury focused on Ethereum currently holds ETH worth $5.3 billion and is buying tokens at a rate 36 times that of daily ETH production. In addition, the Ethereum investment fund has maintained positive capital inflow for 12 consecutive weeks, with a recorded inflow of $996 million in the most recent week.

For example, companies like 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 are gradually surpassing Bitcoin Although the inflow of funds into the Ethereum ETF has shown a catching-up trend in recent weeks, the gradually increasing daily share of fund inflows reflects a structural change in investor behavior. Since the launch of the Ethereum ETF, total inflows have exceeded $5.5 billion, while the inflow of Ethereum investment instruments alone has topped $3.3 billion since mid-April.

In practice, investors are now incorporating ETH ETF into their balanced Crypto Assets portfolio, but Bitcoin funds still account for the majority of institutional capital.

Market Sentiment Changes and Future Challenges Recently, on some trading days, the inflow of ETF funds into Ethereum has exceeded that of Bitcoin, indicating a shift in market sentiment. With enhanced staking support, regulatory clarity, and increased institutional adoption, Ethereum has strong fundamental support. However, Bitcoin's dominance in the ETF space remains solid. To completely surpass Bitcoin, Ethereum's inflow not only needs to rival that of Bitcoin but also must maintain a long-term lead.

Although the Ethereum ETF has made some progress, it still faces several challenges, with key issues including how to position it within institutional portfolios, improve volatility management capabilities, and better utilize market support.

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

Conclusion The rise in funds flowing into Ethereum ETFs indicates that institutional investors' interest in ETH is increasing, and its inflows are gradually surpassing Bitcoin. Although Bitcoin still dominates at present, Ethereum is gradually demonstrating its competitiveness with the support of infrastructure and market sentiment. If the regulatory environment improves further, Ethereum could potentially capture more market share in the future.

ETH-2.59%
BTC-0.78%
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