While bitcoin has been on a strong upward trajectory, surging past US$124,000 on Thursday, its younger sibling, Ethereum, has also drawn attention, surpassing US$4,600 for the first time.
Analysts are attributing these surges to an “unprecedented wave of institutional capital”.
Namely, according to Rachael Lucas, cryptocurrency analyst at BTC Markets, over the past week, spot Ethereum exchange-traded funds (ETF) have attracted more than US$2.3 billion in inflows, with BlackRock’s ETHA capturing the bulk of it. Meanwhile, bitcoin ETFs have added more than US$3.6 billion over the past month, keeping prices well supported.
“Corporate treasuries are amplifying the supply squeeze,” she said.
“Public and private companies, along with sovereign entities, now control over 3.64 million BTC, worth roughly US$447 billion, which is more than 17 per cent of the total supply. On the Ethereum side, firms like BitMine have accumulated over 1.15 million ETH, valued at US$5 billion. These positions are strategic and long-term, taking substantial liquidity out of the market.”
Ultimately, the combination of record ETF inflows and allocations from corporate and sovereign balance sheets has created a scenario where strong structural demand meets limited supply.
Speaking to InvestorDaily last month, Kate Cooper, chief executive of the cryptocurrency exchange OKX Australia, said she had noticed a shift among institutional investors in their plans to enter cryptocurrency investing, moving from speculative interest to developing structured deployment strategies.
At the time, she predicted that as more regulation and infrastructure are developed, institutional investment in the asset class will continue to grow.
Following Ethereum’s July surge, she doubled down on her previous prediction, adding on Thursday: “Ethereum’s push above $4.6k to fresh 2025 highs appears to be driven by genuine network growth, growing institutional allocation and supportive global policy shifts.”
Cooper pointed to some key regulatory developments in the states, including the GENIUS Act – the first major piece of cryptocurrency legislation passed in the US – which established a regulatory regime for stablecoins.
Additionally, she said the prospect of expanded US retirement plan access to cryptocurrency, after the new White House order directing regulators to expand access to alternative investments in 401(k) plans, is contributing to the trend.
General manager of Binance Australia, Matt Poblocki, agreed, highlighting that last year’s approval of spot bitcoin ETFs in the US allowed traditional investors to have a clear, regulated way to gain exposure to the digital currency.
As of 2025, these ETFs have attracted nearly $15 billion in inflows from various sources, including pension funds, asset managers and family offices.
“Momentum on the regulatory front is giving the industry a new sense of legitimacy and stability,” he said.
Closer to home, Cooper added that the Reserve Bank’s latest rate cut is also giving investors more scope to diversify, potentially encouraging stronger engagement in digital assets.
In the near term, she said some key metrics to monitor include daily ETF flow trends, Ethereum’s ability to sustain current levels and its ongoing popularity relative to bitcoin.
“While event risks like the 14 August US PPI release and potential trade policy developments may drive short‑term volatility, broader trends suggest Ethereum is increasingly functioning as core infrastructure for global, compliance‑ready digital assets,” she said.
At the same time, James Quinn-Kumar, director of community engagement for Binance Australia and NZ, admitted that Ethereum’s future is still unknown.
“However, with Ethereum historically exhibiting higher volatility than bitcoin, and the space still maturing, the long-term durability and scale of these corporate ETH strategies remain to be seen,” he said.
Altcoins shine as total market capitalisation surges
July saw a significant upturn in the cryptocurrency market, with total market capitalisation growing by 13.3 per cent, according to the recent Binance Australia Monthly Crypto Market Insights report.
Many experts, including BTC Markets’ Lucas, attribute the surge to growing institutional investments, specifically in Ethereum.
“The record highs we’re seeing in Bitcoin and Ethereum are being fuelled by an unprecedented wave of institutional capital,” she said.
Interestingly, for the first time this year, global market dynamics underwent a significant shift – with altcoin and bitcoin dominance reversing course. Altcoins now account for 39.2 per cent of the market, while bitcoin dominance fell below 60 per cent for the first time since February.
This trend was mirrored locally, with Ethereum surpassing bitcoin in trader numbers on Binance Australia for the first time. July also marked the strongest month on record for institutional treasury adoption of the cryptocurrency.
While bitcoin has long taken centre stage in the cryptocurrency universe, the tables may well be turning as an astounding 24 new companies added Ethereum to their balance sheets throughout the month, marking a 127.7 per cent increase in corporate holdings.
Quinn-Kumar said the significant influx of institutional capital coinciding with a 50 per cent rally in Ethereum signified a “fundamental shift” in how institutions view digital assets.
“Companies are now moving beyond a ’store of value’ mindset and are actively leveraging Ethereum’s unique utility,” he said.
Lucas agreed, adding that the convergence of deep structural demand meeting finite supply is a recipe for sustained upward pressure on prices and a sign that digital assets are now “firmly embedded in global capital markets”.
What makes Ethereum such an attractive option for institutional investors, according to Quinn-Kumar, is partly down to its unique staking yield and deflationary mechanism, particularly over passive ETF vehicles.
“Demand, liquidity and strong price action has seen Ethereum emerge as one of the month’s best performing large-cap assets.”
