Ethereum is replacing Bitcoin as the dominant cryptocurrency? ETFs have seen six consecutive days of net inflows surpassing Bitcoin.

In the past few weeks, Ethereum has outperformed Bitcoin by a wide margin, with the price ratio between the two experiencing a strong rebound from its lowest point since 2019. The annualized premium of Ethereum CME futures compared to spot has exceeded 10%, surpassing the level of Bitcoin, prompting some positions to shift from Bitcoin to Ethereum. Since May, the US Ethereum ETF has been receiving continuous net inflows of funds. In the past six trading days, the net inflow of Ethereum ETF has been nearly $2.4 billion, far exceeding the $827 million of Bitcoin ETF during the same period. And the net inflows into Ethereum ETF have exceeded Bitcoin every day during these six trading days. The Goldman Sachs crypto team pointed out that similar to more and more companies adopting Bitcoin as a financial reserve, some US-listed companies have started to build Ethereum reserves. It is estimated that these companies have collectively purchased over $1.5 billion worth of ETH in the past month. Among them, BitMine Immersion Technologies has purchased $2 billion worth of ETH in the past 16 days, making it the largest Ethereum holder among enterprises. Currently, the top ten Ethereum holders (including the US government) collectively hold over 1.6 million ETH (valued at around $6 billion), with some institutions holding more than the Ethereum Foundation. This scale still only accounts for a small portion of Ethereum's circulating supply of around $400 billion, and is less than the $175 billion worth of ETH circulated in the past year. Galaxy Digital CEO Michael Novogratz predicts that the price of ETH will rise to $4,000 and outperform Bitcoin in the next six months. He pointed out that the recent large purchases of ETH by BitMine and SharpLink Gaming could trigger a supply shock. The global M2 money supply (including the US, Eurozone, Japan, UK, and Canada) is rising, indicating ample market liquidity, which is expected to drive more capital into high-risk assets such as cryptocurrencies. It seems that Ethereum in 2025 is following a similar M2 supply growth trajectory based on the Wyckoff accumulation model, albeit with some lag. Analyst TedPillows on the X platform said: "If in line with the M2 growth trend, ETH should have already surpassed $8,000. This indicates that ETH is currently severely undervalued and may be one of the most potential trades at present." On Monday this week, the spot Bitcoin ETF saw a net outflow of $131 million, ending a streak of 12 consecutive trading days of net inflows, which accumulated to $6.6 billion. Swiss blockchain research firm Swissblock predicts that this trend will continue, stating, "As the market enters a new cycle, ETH is replacing BTC as the market leader." This article is selected from "Wall Street See", Author: He Hao; GMTEight Editor: He Yucheng.