Key Takeaways
Ethereum leads the market: ETFs and leveraged flows push ETH dominance higher, signaling potential 2025 upside.
Ethereum [ETH] keeps flexing while Bitcoin [BTC] cools off.
Notably, BTC hit $124k but is posting red monthly returns, while ETH holds +16%, testing resistance and absorbing capital flows. This pushed ETH.D from 8% to 14% since May, while BTC.D slipped 60% to 59%.
On-chain and product flows back it up. Ether ETFs drove $2.9 billion of last week’s $3.75 billion crypto ETP inflows, pushing ETH toward $4.7k, while BTC only grabbed $552 million despite its all-time high.
Source: CoinShares
And it doesn’t stop there.
Spot ETH ETFs went beast mode, hitting $17 billion in weekly volume as part of a $40 billion combined BTC and ETH ETF grind, signaling heavy liquidity rotation into Ethereum.
Basically, the market’s telling us ETH is the capital magnet right now, with both ETFs and spot flows backing the dominance story.
So that 4% weekly pullback? A minor shakeout in a broader capital rotation into Ethereum?
Ethereum in the driver’s seat
Since May, ETH has ripped 100%+, while BTC is stuck around +20%, showing Ethereum’s capital dominance on the macro frame. And now, speculative flows are piling in.
In just the first two weeks of the month, ETH pulled nearly $10 billion in leverage, with Open Interest hitting a record $65 billion, while BTC barely moved the needle with a $1 billion inflow.
That means derivatives liquidity is rotating hard into Ethereum, not just spot flows. The payoff? ETH/BTC is flashing its first back-to-back MoM green since 2022, with the ratio up 70%+ since May.
Source: TradingView (ETH/BTC)
Why does it matter?
In a risk-on setup, money’s clearly chasing Ethereum. Both spot and leveraged flows are stacking up on ETH, leaving BTC in the dust on weekly and monthly returns.
Consequently, that makes Ethereum’s recent 4% dip more of a shakeout than a trend reversal, offering what could be a prime entry point for upside in 2025.
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