Ethereum’s latest rally isn’t random — it’s being driven by structural shifts in the market that go beyond short-term speculation:
- Spot ETH ETF demand is accelerating. Nearly $5.4B of inflows in July signals sustained appetite from both retail and institutions. Unlike Bitcoin’s earlier ETF hype cycle, this is happening in a more mature, liquid market.
- Corporates are quietly accumulating ETH. With over 2.3% of supply now sitting on company balance sheets, ETH is starting to move from being just a trade to being treated as a strategic reserve asset.
- Liquid staking has regulatory clarity. This is key — institutions can now deploy capital into staking without the overhang of compliance risks, effectively locking up supply while generating yield.
- In-kind redemptions change ETF dynamics. By allowing redemptions directly in ETH, funds reduce forced selling pressure, creating a healthier liquidity cycle and less downward drag.
The takeaway: Ethereum is beginning to show characteristics of a monetary asset with yield, utility, and institutional legitimacy — something Bitcoin, despite its role as “digital gold,” cannot fully replicate.
In other words: BTC remains the benchmark, but ETH is increasingly positioned as the backbone of the digital economy. This shift explains why Ethereum is leading the rally, and why the “flippening” narrative is resurfacing.