Ether’s Wild Ride: ETFs, Squeezes, and a Citi Surprise! 💸🔥

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What to know:

  • 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. 🧨📉

BREAKING: Ether Just Stole Bitcoin’s Spotlight! 🚀 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. 🏆

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. 🌟

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2025-08-20 16:12