Ethereum ETFs recorded $634M in 12-day inflows, signaling strong institutional demand.
Bitcoin ETFs faced $1.2B in outflows as investors took profits.
Ethereum’s Pectra upgrade boosted confidence in its Layer-1 roadmap.
Altcoin season may follow if Bitcoin dominance declines further.
Ethereum ETFs surge as Bitcoin cools, with $634M in ETH inflows over 12 days while BTC faces $1.2B in outflows. Post-Pectra upgrade, ETH gains institutional traction amid altcoin rotation signals.
DIVERGING ETF FLOWS REFLECT SHIFTING INSTITUTIONAL SENTIMENT
The cryptocurrency market is undergoing a notable transition, as institutional capital begins tilting decisively toward Ethereum while Bitcoin retreats from recent highs. Over the past three trading days, Bitcoin spot exchange-traded funds (ETFs) have seen a cumulative $1.2 billion in outflows, including $268 million on Monday alone. In stark contrast, Ethereum ETFs have recorded 12 consecutive days of inflows, amounting to $634 million, marking the asset’s strongest accumulation trend since ETF approval.
This divergence is being closely watched by analysts, many of whom interpret it as a rotation play. With Bitcoin having recently touched a record high near $112,000, investors appear to be locking in profits amid broader macroeconomic uncertainty, while Ethereum is gaining ground on the back of a rejuvenated long-term narrative.
“This flow divergence highlights growing institutional interest in ETH,” wrote BRN analyst Valentin Fournier. “It also suggests sustained profit-taking on BTC, especially as retail demand stays muted.”
ETHEREUM’S MOMENTUM GAINS STEAM POST-PECTRA UPGRADE
Ethereum’s recent momentum is not accidental. The Pectra upgrade, launched in May 2025, has enhanced Layer-1 scalability and renewed confidence among large stakeholders. GSR analyst Carlos Guzman noted that Ethereum’s roadmap has improved markedly, particularly with the Ethereum Foundation’s renewed focus on Layer-1 improvements in parallel with Layer-2 developments.
“There was a lot of criticism about Ethereum moving too slowly,” Guzman said. “But their shift toward Layer-1 prioritization is being well received by the market.”
The improved fundamentals are visible in Ethereum’s price action. As of Tuesday, ETH traded at $2,617, representing a 4.5% increase over 24 hours. Meanwhile, Bitcoin climbed only 1.8%, settling around $105,000, after retreating from its recent peak.
TRADITIONAL FINANCE EYES ETHEREUM AS TREASURY ASSET
Further fueling Ethereum’s ascent is growing institutional integration. Joseph Lubin, Ethereum co-founder and CEO of Consensys, recently led a funding round of $425 million investment into SharpLink Gaming ($SBET), a publicly listed company now positioning itself as an Ethereum treasury reserve. The move underscores Ethereum’s potential as a foundational asset in the evolving digital financial stack.
“Stablecoins will soon replace dollars in global settlement,” Lubin posted on X. “We’re proud to lead this private placement into SharpLink to bring Ethereum exposure to traditional capital markets.”
However, the SharpLink journey has been volatile. Shares spiked to $105.59, crashed to $46.34, and rebounded to $71.60, highlighting investor uncertainty around early treasury strategies.
Still, the symbolic significance remains: Ethereum is being positioned as a reserve asset beyond just speculative use and that narrative is gaining traction in boardrooms, not just blockchain forums.
BITCOIN SENTIMENT COOLS AMID MACROECONOMIC PRESSURES
While Ethereum enjoys technical and narrative tailwinds, Bitcoin is confronting macro headwinds and profit-taking cycles. Monday marked the third straight day of Bitcoin ETF outflows, disrupting a previously bullish 10-day inflow streak. Analysts from Crypto Finance described the situation as part of a “healthy price discovery phase.”
“Despite supportive headlines, hesitation to chase the rally is natural,” they noted. “The current correction is in line with market logic.”
Technical indicators support this view. Bitcoin has struggled to stay above the $105,000 support level, with key downside zones now eyed at $103,100, $100,633 (50-day EMA), and $96,366 (100-day EMA). The MACD indicator remains bearish, suggesting continued short-term downside pressure.
In contrast, Ethereum’s technical structure is more encouraging. A recent golden cross, with the 50-day EMA rising above the 100-day EMA, supports bullish continuation. With ETF inflows bolstering confidence, analysts see potential for a move toward $2,750 and if momentum persists, a test of $3,200 may follow.
ALTCOIN SEASON ON THE HORIZON – BUT NOT QUITE HERE
Ethereum’s lead has prompted discussions of an incoming altcoin season, a period where alternative cryptocurrencies outperform Bitcoin. According to MEXC COO Tracy Jin, “Ethereum is decisively leading the charge,” with several tokens like AAVE, ARB and XMR also seeing strong performance.
However, she cautions that true altseason conditions are not yet in place. Only 27 of the top 100 altcoins have outperformed BTC over the past 90 days and Bitcoin’s dominance remains elevated at 63.1%. Historically, altcoin cycles gather steam only when Bitcoin’s market share starts to decline meaningfully.
“Ethereum dominance has grown by 2% in May,” Jin observed. “But for altseason to fully take hold, Bitcoin must first stabilize and lose some of its dominance.”
Should BTC find firm footing around the $100,000 psychological level and if Ethereum breaks above its next resistance levels, the rotation into altcoins could accelerate – potentially unlocking the next phase of crypto’s cyclical expansion.
A MARKET IN TRANSITION, WITH ETHEREUM AT THE HELM
The unfolding divergence between Ethereum and Bitcoin reflects deeper undercurrents in the crypto market. Institutional investors are no longer treating all digital assets interchangeably. While Bitcoin continues to serve as a macro hedge and headline leader, Ethereum is emerging as a technologically dynamic, strategically integrated asset appealing to both Web3 innovators and Wall Street firms.
Whether this trend marks the beginning of a long-term rebalancing or a temporary rotation remains to be seen. But for now, Ethereum’s decisive edge in ETF flows, protocol development and cross-sector relevance positions it at the center of crypto’s next strategic phase.
〈Ethereum ETFs Surge as Bitcoin Cools〉這篇文章最早發佈於《CoinRank》。
