Citi: Ether Reclaims Market Share as Spot ETF Inflows Top $13B

Ether (ETH) is regaining momentum after a steep early-year decline, with Wall Street giant Citi highlighting a notable shift in investor appetite and on-chain strength in its latest report published Tuesday.

The second-largest cryptocurrency has rebounded nearly 30% year-to-date following a drawdown of more than 55%, outpacing its peers and narrowing the performance gap with bitcoin (BTC). Unlike previous cycles where ether ceded dominance, this time it appears to be reclaiming market share, the bank noted.

A key driver of this resurgence is surging demand for spot ether exchange-traded funds. Net inflows have ballooned to over $13 billion, a sharp rise from $2.6 billion in April, according to analysts Alex Saunders and Nathaniel Rupert.

As these inflows grow, ETF balances are exerting greater influence over price action, the analysts said. Institutional adoption is also accelerating, with ether treasury firms initiating large-scale purchases since May. These holdings now approach $10 billion at current market valuations, with corporate equity values rising in tandem with ETH’s market performance.

On-chain trends further support the bullish case. Large wallets have been accumulating ether while smaller investors reduce exposure. Concurrently, ETH balances on centralized exchanges continue to drop, indicating more tokens are moving off-platform and back into personal custody—a pattern that may be contributing to a supply squeeze.

Citi emphasized that this rally isn’t merely technical. Blockchain activity has picked up meaningfully, reinforcing the price move with solid fundamentals. Coupled with a favorable macroeconomic backdrop that resembles a “goldilocks” environment—not too hot, not too cold—ether may have room to extend its rally, especially with growing regulatory clarity and strong investor narratives underpinning sentiment.