Ethereum 
$2,369 has overtaken Bitcoin 
$76,042, driven by robust inflows into spot ETFs and growing interest from institutional treasuries. A research report by K33 Research, dated August 19, indicated that the ETH/BTC pair surged above 0.037, marking its highest level of the year. Over this period, Ethereum appreciated by approximately 70%, while Bitcoin only saw a 9% increase. Additionally, since June 2, spot Ethereum ETFs in the United States have attracted around 9.4 billion dollars, and institutional treasury balances have exceeded 2% of circulating Ethereum.
Spot ETF Inflows and Increased Institutional Demand
Oslo-based K33 attributes Ethereum’s upward momentum to a twin-channel demand shock. The first channel involves a substantial inflow of 9.4 billion dollars into spot Ethereum ETFs since June 2. The second channel is the increase in the proportion of Ethereum in institutional crypto treasuries, rising from 0.2% to over 2% within two months. CoinGecko data reveals that ETFs and institutional treasuries have collectively absorbed about 3.7% of the circulating Ethereum supply since the beginning of June. Although Ethereum’s market capitalization is roughly one-fifth that of Bitcoin, this absorption has been pivotal in influencing price dynamics.
The price performance supports this scenario. Ethereum has appreciated by approximately 70% since June 1, whereas Bitcoin’s gains were limited to 9%, with the ETH/BTC pair surpassing the 0.037 threshold to reach the year’s peak. K33 highlighted the central roles of ETF demand and the addition of Ethereum to balance sheets in this divergence.
Interest in leveraged Ethereum is also on the rise. VolatilityShares’ 2x ETH ETF has increased its Ethereum equivalent position by around 456,000 ETH since June 2, and as of August 18, this accounts for roughly 61% (about 1.14 million ETH) of the open positions in CME ETH futures.
Declining Interest in Bitcoin Derivatives: Weakened Risk Appetite
On the Bitcoin front, there was a notable cooling in derivative markets following the release of US Producer Price Index (PPI) data for July, which exceeded expectations. Upon the data release, the price of the leading cryptocurrency quickly dropped from around 121,000 dollars to approximately 117,700 dollars, with liquidations exceeding 1 billion dollars within a few hours.
According to K33, CME Bitcoin futures premiums stagnated at an annualized rate of approximately 5.5% after testing double digits at their peak. The notional open interest on CME increased by about 4,800 BTC, reaching roughly 143,000 BTC. The value of open positions in perpetual futures hovered near 300,000 BTC. The one-month options skew climbed to almost the highest level in the last two years. This market balance formed a fragile structure that could amplify squeezes in either direction.
By the end of the second quarter, assets under management by spot Bitcoin ETFs increased to 134.6 billion dollars through price multipliers and reallocations. Institutional investors disclosed ETF holdings worth 33.6 billion dollars via 13F filings. In August, weekly net flows into Bitcoin-based investment products remained sluggish to slightly negative, while Ethereum continued to attract capital. Over the past week, Bitcoin’s average daily spot volume was 3.4 billion dollars, with the value of open positions in total futures+perpetual futures approaching 59.4 billion dollars. On August 14, spot volume jumped above 6 billion dollars. The 90-day correlation with Ethereum remained strong, while correlations with gold and the S&P 500 weakened.
