Bitfinex Alpha #169 | ETH Climbs as BTC Consolidates

Importantly, ETH treasury companies have stepped in to absorb a substantial portion of this selling pressure, mitigating broader downside risk. While precise data is not yet fully disclosed, preliminary estimates suggest institutional treasury demand has provided meaningful support.

ETF flows have become the marginal buyer/seller for both BTC and ETH. After a strong run of July–early August inflows, the pendulum swung the other way last week and into Monday, amplifying price sensitivity in a thin orderbook. However, this weakness in flows usually does not last for more than a month at a time and historically, all ETFs across risk assets as well as safe havens like Gold, typically slow down towards the end of Summer in August/September.

Last week, markets looked to be on a strong footing after Federal Reserve Chairman Jerome Powell signalled at Jackson Hole that the “balance of risksˮ had shifted, leaving the door open for rate cuts as early as September. Equities rallied sharply, led by technology large caps, while crypto assets followed with a broad-based surge. Alongside ETH reaching fresh all-time highs, Solana also climbed above the $200 level, reaching $212.60, as the entire digital asset class pushed higher in lockstep with stocks, underscoring the tightening correlation between the two markets.

Institutional inflows into ETH remain relentless. Sharplink Gaming SBET) added another 143,593 ETH to its holdings, Bitmine Immersion Technologies BMNR overtook MARA Holdings MARA) to become the second-largest digital asset treasury, and BTCS Inc BTCS) announced a one-time “Bividendˮ in ETH. BMNR, Galaxy Digital, and other corporate treasuries have also accelerated the pace of their accumulation, further solidifying institutional support for the asset class.

On-chain, ETH treasury balances now exceed $10 billion, with daily transactions approaching record levels. This persistent activity has helped offset ETF-driven sell pressure, and on a net basis, Ethereum ETFs are now firmly outpacing Bitcoin products. Network development also continues to advance, highlighted by DBS Bank announcing the issuance of tokenised notes on Ethereum.