A new CryptoQuant report from XWIN Research Japan reveals a major institutional shift in crypto markets, as Ethereum exchange-traded funds (ETFs) have overtaken Bitcoin ETFs in quarterly inflows for the first time. The data suggests that professional investors are beginning to view Ethereum as a more strategic, yield-driven asset compared to Bitcoin’s store-of-value narrative.
According to the report, Bitcoin ETFs brought in $17 billion in Q4 2024 and another $13 billion in Q2 2025, but inflows have cooled to $8 billion in Q3 2025. By contrast, Ethereum ETFs surged to $9 billion in the same period, a historic milestone marking the first quarter where Ethereum outpaced Bitcoin in ETF demand.
CryptoQuant’s on-chain data further highlights Ethereum’s rising dominance. As of October 2025, institutional funds collectively hold 6.8 million ETH, nearly double the amount recorded at the beginning of the year. Fund trading volumes have continued climbing since mid-2025, even during broader market pullbacks, signaling steady institutional accumulation and confidence in Ethereum’s long-term potential.
While Bitcoin remains the most widely held crypto asset globally, its ETF inflows have become more volatile as institutions rebalance portfolios following heavy accumulation earlier in the year.
Analysts note that the capital rotation toward Ethereum reflects growing interest in staking yields, DeFi integration, and on-chain innovation, areas that provide more utility-based growth potential than Bitcoin’s fixed-supply model.
If this trend continues into Q4 2025, Ethereum could establish a new institutional benchmark for digital asset exposure. CryptoQuant concludes that this shift may redefine crypto portfolio strategy worldwide, with Ethereum moving from a secondary position to a core holding alongside Bitcoin in institutional investment frameworks.