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Ether’s Institutional Surge
Over the past six weeks, Ethereum has attracted $1.19 billion in institutional funds, including $889 million in the last month.
Ether’s total assets under management (AUM) now exceed $14 billion, fueled by strong demand for decentralized finance (DeFi) applications and a boost from spot Ethereum ETFs in the U.S.
The $321 million inflow marks Ethereum’s strongest week since December 2024. With the digital asset market experiencing its seventh consecutive week of net inflows—$286 million this week alone—Ether’s dominance signals a trend of institutional diversification away from Bitcoin.
Bitcoin’s Inflow Dilemma
While the broader crypto market saw positive sentiment, Bitcoin bucked the trend. The asset posted $8 million in outflows, despite major purchases by firms like Michael Saylor’s Strategy. On June 3, Strategy added 705 BTC, bringing its holdings to 580,955 BTC. Japanese firm Metaplanet also acquired more BTC in the same week.
 
Bitcoin prices dropped from a high of $111,000 to $106,000 following a New York court’s decision on former President Trump’s tariff proposal.
The ruling triggered investor caution and contributed to Bitcoin’s tepid flow data. Yet, the decline does not suggest a mass exit. Instead, it indicates institutional hesitation amid macroeconomic uncertainties.
XRP, once favored for its promise in cross-border payments, saw $28 million in outflows last week. The delay in the U.S. SEC decisions on its anticipated ETF hurt momentum. Despite positive year-to-date figures, monthly flows turned negative. Regulatory ambiguity remains a major hurdle.
CoinShares also reported shifting geographic investment patterns. While the U.S. remained dominant with $199 million in inflows, other regions showed strength.
Germany attracted $42.9 million, Australia $21.5 million, and Hong Kong reported $54.8 million—the highest since launching its crypto exchange-traded products over a year ago.
What’s Next for Ethereum?
Ethereum’s strong position comes amid broader market growth and rising utility in DeFi. Its advantage lies in active network use cases and growing adoption of ETH-based products. While dominant in market cap, Bitcoin now faces stiffer competition for institutional attention.
XRP’s case highlights the influence of regulatory clarity on investment behavior. Until its legal status is resolved, XRP will likely trail its more established peers.
Ethereum’s performance indicates a shift in institutional strategy. As DeFi platforms evolve and spot ETFs mature, ETH could remain a leader in the crypto investment race. Still, Bitcoin’s long-term appeal and XRP’s cross-border potential cannot be ruled out.
