Key takeaways

Why are investors shifting from Bitcoin to Ethereum?

Ethereum ETFs saw $9 billion in inflows in Q3 2025, surpassing Bitcoin’s $8 billion for the first time.

Will the market rebound amid weak sentiment?

Extreme pessimism among traders has often been followed by short-term recoveries in the crypto market.

Large investors are moving capital from Bitcoin [BTC] into Ethereum [ETH], as ETH ETFs record their strongest inflows to date. Bitcoin demand, by contrast, has cooled sharply in recent weeks.

Despite this shift, retail traders remain cautious. So, will the market rebound?

Ethereum ETFs outpace Bitcoin

Source: CryptoQuant

Institutional investors are increasingly favoring Ethereum over Bitcoin. Data showed that ETH ETFs drew $9 billion in Q3 2025, surpassing Bitcoin’s $8 billion in inflows.

This is a first in crypto ETF history.

Source: CryptoQuant

Ethereum fund holdings have climbed to 6.8 million ETH, nearly double earlier levels, indicating sustained institutional accumulation.

Bitcoin is still the top crypto, but its ETF inflows are getting shaky as investors shift toward coins like Ethereum that offer staking and more growth potential.

Source: CryptoQuant

This trend could redefine institutional portfolio strategies in Q4.

ETH/BTC pair is weak

Despite institutional inflows, Ethereum’s performance against Bitcoin has remained subdued.

The ETH/BTC pair has traded sideways around the 0.035 mark for over a week, failing to establish a clear breakout after early October’s sharp drop.

Source: TradingView

Lower highs on the daily chart mean fading bullish momentum, while the tight consolidation zone means indecision among traders.

A move above 0.036 could confirm strength in Ethereum, but further downside toward 0.034 remains possible if Bitcoin dominance rises again.

At press time, ETH traded at 0.03527 BTC, down 0.48% on the day.

Retail sentiment turns bearish

Santiment data shows that most retail traders expect crypto prices to fall this weekend, with “lower” and “below” mentions dominating discussions.

Source: Santiment

Such pessimism often precedes short-term rebounds, as crowd sentiment typically moves counter to market outcomes. This pattern suggests fear is currently outweighing optimism, especially after a volatile week for Bitcoin and Ethereum.

If institutional inflows continue, this mild “crowd FUD” could trigger a relief rally.