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By Will Canny, AI Boost|Edited by Parikshit Mishra
Aug 20, 2025, 12:04 p.m.
- Ether has rallied nearly 30% year-to-date after a steep drawdown earlier this year, testing bitcoin’s dominance as capital rotates, according to the report.
- Citi noted that institutional flows have accelerated, with spot ETH ETF inflows surpassing $13 billion and treasury companies boosting holdings to around $10 billion.
- On-chain accumulation has risen as large wallets move supply off exchanges, creating a potential squeeze dynamic alongside improving network activity, the bank said.
After enduring a drawdown of more than 55% earlier this year and lagging peers amid tariff-driven risk-off sentiment, ether (ETH) has staged a powerful comeback, Wall Street bank Citi (C) said in a research report on Tuesday.
The second-largest cryptocurrency is now up nearly 30% year-to-date, testing bitcoin’s (BTC) dominance in a way not seen since late last year. This time, however, ether is taking market share rather than ceding it, the report said.
STORY CONTINUES BELOW
Spot ether exchange-traded funds (ETFs) have seen a surge of demand. Cumulative net inflows now top $13 billion, up from just $2.6 billion in April, analysts Alex Saunders and Nathaniel Rupert wrote.
As ETF balances grow, flows are playing a more direct role in price dynamics, the analysts said.
Ether treasury firms have also joined the bid, with large purchases beginning in May. Their collective holdings now hover near $10 billion at current market values, while the equity valuations of these companies have expanded alongside ether’s rally, the report noted.
Blockchain data shows large wallets accumulating ether while smaller investors trim exposure. Ether balances on centralized exchanges continue to decline, signaling a shift of supply back on-chain. This dynamic could be amplifying the latest leg higher, creating a squeeze-like effect, the report added.
While the rally has been sharp, the bank’s analysts caution it isn’t purely technical. On-chain activity has picked up, reinforcing the move with stronger fundamentals. Combined with a macro backdrop that resembles a “goldilocks” environment, neither too hot nor too cold, ether’s resurgence could have legs, particularly with supportive regulatory signals and bullish narratives in play.
Read more: Ether-Led Rally Pushed Crypto Market Cap to $3.7T in July: JPMorgan
Disclaimer: Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards. For more information, see CoinDesk’s full AI Policy.
Will Canny is an experienced market reporter with a demonstrated history of working in the financial services industry. He’s now covering the crypto beat as a finance reporter at CoinDesk. He owns more than $1,000 of SOL.
“AI Boost” indicates a generative text tool, typically an AI chatbot, contributed to the article. In each and every case, the article was edited, fact-checked and published by a human. Read more about CoinDesk’s AI Policy.
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By Will Canny, AI Boost|Edited by Stephen Alpher
14 minutes ago
Over the next ten years, trillions of dollars will move from baby boomers to younger heirs, who are more inclined toward digital assets, the report said.
What to know:
- $10.6 trillion in U.S. assets is expected to shift from baby boomers to younger heirs by 2030, with trillions more in Europe and Asia, creating a historic opening for bitcoin adoption, the report said.
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