Ethereum is outperforming Bitcoin in recent days, driven by strong ETF inflows, growing adoption by public companies, and its staking yield potential. Analysts suggest this divergence could persist in the short and medium term.
ETFs and rising institutional demand
Ethereum has seen more than $2.5 billion in ETF inflows in August alone, while Bitcoin funds recorded notable outflows. This shift highlights changing preferences among institutional investors, who see ETH not only as a store of value but also as a utility asset powering smart contracts and decentralized finance, according to Cinco Días and MarketWatch.
Corporates add Ethereum to balance sheets
Small-cap public companies are adding Ethereum to their treasuries as a hedge against inflation and to capture staking yields of 3 4% annually. Corporate holdings already exceed 966,000 ETH, worth about $3.5 billion, underscoring rising confidence in the asset, Reuters reported.
Price surge and the “catch-up trade”
ETH has gained as much as 54% over the past month, far outpacing Bitcoin’s modest 10% rise. This “catch-up trade” pushed Ethereum to highs near $4,865.81, fueled by institutional buying and increased liquidity, according to Business Insider and WSJ.
Regulatory momentum
Another tailwind is the improving U.S. regulatory environment, including the approval of the GENIUS Act, which provides clearer rules for stablecoins and strengthens Ethereum’s role as a backbone for digital assets. This regulatory clarity is expected to attract even more institutional capital, as highlighted by Business Insider.
The combination of institutional inflows, corporate accumulation, and practical utility places Ethereum ahead of Bitcoin for now, signaling that the race for crypto market dominance is entering a new phase.
Sources:Cinco Días, MarketWatch, Reuters, Business Insider, Wall Street Journal
