Ethereum is steadily closing the gap with Bitcoin in institutional markets, with ETF holdings set to flip by September.
Ethereum ETH $3 082 24h volatility: 0.2% Market cap: $373.12 B Vol. 24h: $18.77 B exchange-traded funds (ETFs) could soon surpass Bitcoin BTC $90 307 24h volatility: 0.6% Market cap: $1.80 T Vol. 24h: $42.62 B ETFs in terms of supply held, a development that would mark a major turning point in institutional crypto markets.
According to Dragonfly data analyst hildobby, BTC ETFs currently hold 6.38% of the total BTC supply, while ETH ETFs hold 5.08% of the total ETH supply. At the current pace, ETH ETF holdings are expected to surpass BTC ETF holdings as a share of total supply by September.…
— Wu Blockchain (@WuBlockchain) August 19, 2025
Ethereum ETFs Gaining Ground
According to Dragonfly data analyst hildobby, Bitcoin ETFs currently hold about 6.38% of the total BTC supply, while Ethereum ETFs account for 5.08% of the ETH supply.
at current pace, % of ETH in ETFs will exceed BTC's in september
srcs: https://t.co/jW6Of0S51K, https://t.co/0uASMTncJf pic.twitter.com/LzVIceXlha
— hildobby (@hildobby) August 18, 2025
While Bitcoin retains the lead, the gap is closing quickly. At the current pace, Ethereum ETFs are projected to overtake Bitcoin ETFs as a share of circulating supply by September.
The shift comes even as both asset classes faced outflows this week. On August 18, Ethereum spot ETFs registered net outflows of $197 million, the second-largest daily exit in their history.
On August 18, Ethereum spot ETFs recorded total net outflows of $197 million, the second-largest in history. Bitcoin spot ETFs saw total net outflows of $122 million, with Bitwise ETF (BITB) being the only one to register net inflows.https://t.co/Tvs2oCSxTg pic.twitter.com/6WJJTVHdji
— Wu Blockchain (@WuBlockchain) August 19, 2025
Bitcoin spot ETFs also saw redemptions, losing $122 million, though Bitwise’s BITB stood out as the only fund recording inflows.
ETH/BTC Reversal
Ethereum has been displaying renewed strength against Bitcoin in spot and derivatives markets. The ETH/BTC pair recently climbed to 0.0368, its highest level of the year, after hitting a six-year low in April.
Spot market dynamics show that last week, Ethereum’s trading volume was nearly three times that of Bitcoin, with the ETH/BTC spot volume ratio hitting an all-time high of 2.71.
ETH/BTC ratio. | Source: CryptoQuant
In derivatives, the ETH/BTC perpetual futures open interest ratio surged to 0.71, a level not seen in 14 months. It is clear that investors are now more interested in Ethereum than Bitcoin, making it a top crypto to buy in 2025.
Bitcoin Faces Its Own Battle
Bitcoin is facing a psychological and technical fight of its own. Market analytics firm Swissblock stated that Bitcoin could drop below $100,000 in September, pointing to the “$100k–$110k wall” formed by more than 100 days of trading above $100k.
Lots of noise about Bitcoin dropping below $100k in September.
Beyond indicators, $BTC would need to break the $100k–$110k wall built over 100+ days above $100k.
Not indestructible, but a tough fight for bears. pic.twitter.com/upiCtzQTtd
— Swissblock (@swissblock__) August 18, 2025
Swissblock noted that this resistance level is not “indestructible,” but breaking it down would require significant bearish momentum. For now, the zone remains a major battleground for Bitcoin’s price direction.
A September to Watch
The convergence of ETF supply dynamics, ETH/BTC strength, and looming technical battles for Bitcoin sets the stage for a volatile September.
If Ethereum ETFs do surpass Bitcoin ETFs in terms of supply held, the discussions of ETH flipping BTC in the coming years could once again surface.
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