Institutional Demand and Ethereum ETFs Drive Momentum

Over the past month, ETH has rallied more than 46%, adding 7.8% in the last week alone and 2.7% in the past 24 hours. Since April 21, Ethereum’s value relative to Bitcoin has surged by roughly 90%, underscoring its outperformance in recent weeks.

Two primary forces are fueling this rally: aggressive institutional accumulation and substantial inflows into U.S. spot Ethereum ETFs.

Major corporate buyers are acquiring ETH in multi-billion-dollar volumes. Leading the pack is BitMine with over 833,000 ETH (valued around $3.3B), followed by SharpLink, which holds nearly 522,000 ETH (about $2.1B). According to Geoffrey Kendrick of Standard Chartered, these players are “just getting started” and could eventually control up to 10% of Ethereum’s total circulating supply.

U.S. spot Ethereum ETFs have posted remarkable net inflows in recent weeks, at times surpassing their Bitcoin counterparts. In the past month alone, these funds attracted nearly $5B, contributing to a cumulative $9.4B net inflow since their launch in July 2024. This influx has provided a significant liquidity boost to ETH’s market structure.

Whales and Corporate Financing Amplify Bullish Sentiment

Blockchain data analyst Cas Abbé reported a high-profile over-the-counter (OTC) transaction in which a whale purchased 10,400 ETH for approximately $40.5M. Shortly before, Fundamental Global Inc. filed for a $5B bond issuance aimed at acquiring even more ETH — a clear sign that institutional appetite for Ethereum is accelerating.

“$ETH continues to outperform $BTC. A whale just acquired 10.4K ETH for $40.5M via OTC. With Fundamental Global seeking $5B for additional ETH purchases, the $4K resistance level appears increasingly fragile.”

Bitcoin Dominance Slips — A Shift Toward Altcoins

Ethereum’s surge has coincided with a decline in Bitcoin dominance, now hovering around 59%. This shift suggests a reallocation of capital from Bitcoin into altcoins, with ETH emerging as the prime beneficiary.

Market analyst Rekt Capital observes that Ethereum’s dominance has already reached 50–60% of its broader macro uptrend, a pattern reminiscent of the 2021 bull market cycle. While Bitcoin’s dominance could temporarily rebound, historical precedents point toward a sustained downtrend — a scenario often associated with the onset of an altcoin season, where alternative cryptocurrencies outperform Bitcoin in both momentum and percentage gains.