The great rotation: Is Wall Street choosing Ethereum over Bitcoin?

Key takeaways

Ethereum is attracting demand, with ETFs seeing strong inflows and Binance volumes dominating trading activity. A September correction could be healthy, but if ETH holds firm, Q4 may deliver upside.

Ethereum [ETH] may be getting ready for a strong finish to 2025.

Binance’s ETH reserves have dropped more than 10% in just a week, a sign of rising demand as investors move coins off exchanges.

At the same time, ETH ETFs have started to see meaningful inflows, in contrast to Bitcoin [BTC] ETFs, which have cooled in recent days.

With experts warning of a potential dip in September before momentum builds, the signs for a possible Ethereum-led rally in Q4 are everywhere.

ETH ETFs outpace BTC

The flow of money paints the clearest picture.

Source: SoSoValue

Bitcoin ETFs, once the undisputed magnet for institutional capital, have shown patchy performance lately, even recording red weeks as seen in the latest data.

Source: SoSoValue

In contrast, Ethereum ETFs are on a strong upward trend, with net inflows exceeding $1.25 billion in just the past week.

At press time, ETH’s Total Net Assets have surpassed $29 billion. In comparison, Bitcoin ETFs held around $145 billion, but their growth has slowed considerably.

While Bitcoin investors appear to be cashing out and reallocating funds, Ethereum is attracting fresh capital at an accelerating rate.

Binance ETH reserves plunge by 10%

Ethereum is flying off Binance!

In less than a week, the exchange’s ETH reserves fell from 4.97 million to 4.47 million; a sharp 10% drop.

That kind of sustained outflow is usually a sign of strong demand. This comes as traders move their ETH into self-custody or deploy it in DeFi for yield opportunities.

Source: CryptoQuant

Although internal reshuffling at Binance remains a possibility, the consistent pace of withdrawals suggests that investors are actively moving their assets off the exchange.

Declining reserves typically indicate reduced selling pressure in the market, especially at a time when demand appears to be rising.

ETH’s September test

Ethereum’s chart showed a mixed setup.

After a strong rally earlier this month, ETH has cooled near $4,470, at press time, with RSI hovering around 55; neither overbought nor oversold.

That leaves room for a potential pullback, which some analysts say is overdue.

Source: TradingView

As crypto investor Ted Pillows put it,

“$ETH to $10,000 is programmed this cycle. But first, I’m expecting a correction in September.”

A dip could make way for a much stronger Q4, when ETH has historically outperformed.

Source: X

Still, if Ethereum skips the correction and posts a “green September,” it could be a sign of outsized strength.