Bitcoin rival Ethereum may see larger growth than Bitcoin, as suggested by this particular indicator
In the bustling world of cryptocurrencies, Ethereum (ETH) has become a hot commodity for several public companies and institutional players in 2025. The surge in ETH purchases is driven by a combination of strategic investments and the necessity to power blockchain-based operations.
Leading the pack is BitMine Immersion Technologies, holding over 1.7 million ETH, equivalent to around $7.9 billion. The company aims to control up to 5% of all ETH supply, having acquired over 190,500 tokens recently. SharpLink Gaming, with 741,000 ETH (around $3.2 billion), is also building significant exposure to Ethereum as part of their gaming and betting infrastructure. The CEO of SharpLink calls ETH the "trustware of global finance."
Other notable corporate ETH holders include EthZilla and others, as reported by analysts.
The increased institutional and corporate demand for ETH over Bitcoin (BTC) can be attributed to several factors. Firstly, the utility of Ethereum's network powers operations, transactions, and smart contracts across decentralized finance (DeFi), gaming, and infrastructure services, making it a "productive asset" due to staking rewards from Ethereum's proof-of-stake consensus.
Upgrades improving speed and reducing transaction costs on Ethereum have also reduced risks associated with the network, making it more attractive for corporate use. The growing role in large stablecoin transactions and decentralized applications, expected to accelerate due to regulatory clarity, is another factor.
Institutional inflows through ETFs and corporate treasuries have surged, with Ethereum spot ETFs seeing major net inflows while Bitcoin ETFs have seen outflows recently, suggesting a shifting investor preference towards ETH. Analysts and crypto experts predict strong future price rallies for ETH, fueling more corporate confidence. Some foresee ETH prices possibly reaching $20,000 in the current cycle.
The surge in ETH's price has been observed, with a rise of over 22% on a monthly scale. Analytics company Santiment has noted that companies have been launching strategies to hold ETH as a reserve asset. In the past week alone, regulated financial vehicles registered net inflows of over $2.850 billion.
Despite the bullish sentiment around bitcoin, Ether might have more room for growth compared to bitcoin. Ether has yet to break its 2021 all-time high, reaching its highest price levels in almost four years at over $4,700. Whales have been consistently purchasing Ether, with on Tuesday and Wednesday, these funds registering net inflows of over $520 million and $729.1 million respectively.
The crowd has not entered a peak euphoria phase for Ether, potentially indicating a more bullish path for Ether. ETFs have seen unprecedented demand for Ether, with companies like Tom Lee's Bitmine and SharpLink accumulating billions of dollars worth of Ether.
In summary, companies are buying large amounts of ETH both as a strategic investment and as a necessary asset to support blockchain-based business models. The proof-of-stake model and network upgrades contribute to its demand rise over Bitcoin, which remains primarily a digital gold/store of value.
