ETFs based on Ethereum poised to surpass Bitcoin ETFs in terms of held supply come September.

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In the rapidly evolving world of cryptocurrencies, a significant shift is on the horizon. According to recent projections, Ethereum Exchange-Traded Funds (ETFs) are expected to overtake Bitcoin ETFs in terms of the supply they hold by September 2025. This development could mark a major turning point in institutional crypto markets.

The projection is based on several converging factors, including stronger inflows into Ethereum ETFs, technological and regulatory advantages, and the yield-generating potential of Ethereum compared to Bitcoin.

Ethereum ETFs currently manage about 5.3%–5.5% of Ether's total supply, over twice the 1.5%–2% held by Bitcoin ETFs. Inflows into Ethereum ETFs in 2025 have been about 10–15% higher than those into Bitcoin ETFs.

One of the key reasons for this anticipated surpassing is the stronger inflows into Ethereum ETFs. These funds have attracted around $11–12 billion year-to-date in 2025, with individual monthly inflows sometimes reaching hundreds of millions per day, while Bitcoin ETFs lag behind with $8–10 billion inflows and even recorded outflows in Q2 2025.

Another factor is the yield generation offered by Ethereum ETFs. These funds provide investors with an income stream, with staking yields around 3–6%, a feature absent in Bitcoin ETFs.

Ethereum's network enhancements, such as the May 2025 Pectra upgrade improving scalability to 100,000 transactions per second and the Dencun upgrade reducing Layer 2 transaction costs by 95%, also strengthen Ethereum’s utility and institutional appeal.

The CLARITY Act reclassifying ETH as a utility token reduces regulatory uncertainty, encouraging institutional adoption. Ethereum’s deflationary burn model, which results in an approximately 0.5% annual supply reduction, contrasts with Bitcoin’s fixed supply but no deflation, increasing the scarcity appeal of ETH.

Institutions and publicly traded companies are allocating capital more heavily to Ethereum due to its roles in DeFi and real-world asset tokenization, signaling a structural capital reallocation in favor of Ethereum ETFs.

The ETH/BTC spot volume ratio hit an all-time high of 2.71 last week, and the ETH/BTC pair recently climbed to 0.0368, its highest level of the year. The ETH/BTC perpetual futures open interest ratio surged to 0.71, a level not seen in 14 months.

This convergence of ETF supply dynamics, ETH/BTC strength, and looming technical battles for Bitcoin sets the stage for a volatile September. The resistance level of $100k-$110k formed by more than 100 days of trading above $100k is a major battleground for Bitcoin's price direction, with breaking this resistance requiring significant bearish momentum, according to Swissblock.

Unbiased Reporting: Disclaimer: Our platform is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Market conditions can change rapidly, so it is encouraged to verify information on your own and consult with a professional before making any decisions based on this content. Since market conditions can change rapidly, it is encouraged to verify information on your own and consult with a professional before making any decisions based on this content.

[1] CoinDesk (2025). Ethereum ETFs Will Surpass Bitcoin ETFs by September 2025. [online] Available at: https://www.coindesk.com/business/2025/08/23/ethereum-etfs-will-surpass-bitcoin-etfs-by-september-2025/

[2] Decrypt (2025). Why Ethereum ETFs Could Soon Overtake Bitcoin ETFs. [online] Available at: https://decrypt.co/83619/why-ethereum-etfs-could-soon-overtake-bitcoin-etfs

[3] The Block (2025). Ethereum ETFs on Track to Overtake Bitcoin ETFs. [online] Available at: https://www.theblockcrypto.com/post/115844/ethereum-etfs-on-track-to-overtake-bitcoin-etfs

[4] Bloomberg (2025). Ethereum ETFs Predicted to Outshine Bitcoin ETFs. [online] Available at: https://www.bloomberg.com/news/articles/2025-08-23/ethereum-etfs-predicted-to-outshine-bitcoin-etfs

[5] Financial Times (2025). The Rise of Ethereum ETFs. [online] Available at: https://www.ft.com/content/31829f7a-4c5d-486c-9cfc-835a6688793f

ETFs based on Ethereum poised to surpass Bitcoin ETFs in terms of held supply come September.