ETH/BTC Exchange Rate Hits New High for the Year: Analysis of Institutional Accumulation and Market Structure Change

Despite the recent pullback in the price of Ethereum from its highs, its weekly trend remains a rise, demonstrating strong momentum. This article provides a deep analysis of ETH's strong performance relative to BTC, covering Spot and derivation market data, record growth in institutional Holdings (reaching 6.1 million ETH), and favourable information from U.S. regulations (such as the CLARITY Act), offering investors comprehensive Ethereum market analysis and Blockchain investment strategy references.

Market Performance: ETH/BTC Exchange Rate Strongly Breaks Through

Ethereum ( ETH ) has recently maintained a rising momentum, reaching $4,774 last week, nearing the historical high of over $4,800 in 2021. Although it subsequently pulled back to around $4,306, its weekly increase was still 0.7%, indicating sustained investor interest. Even more noteworthy is its performance relative to Bitcoin ( BTC ). Analysts point out that ETH has shown resilience in both the spot and derivation markets. ETH/BTC trading pair has currently risen to 0.0368, marking the highest level since 2025, signifying a significant recovery from its six-year low at the beginning of this year.

Trading Volume Surge and Market Preference Shift

(Bitcoin and Ether spot trading volume | Source: CryptoQuant)

Data shows that the market participation model has undergone a significant shift. Last week, the weekly Spot trading volume of ETH reached a historic high compared to BTC, with the volume nearly three times that of Bitcoin. This clearly indicates that market preference is adjusting towards Ethereum, with traders and investors increasing their asset allocation. This trend also extends to the cryptocurrency derivation market. The open interest ratio of ETH/BTC perpetual contracts has risen to 0.71, a 14-month high, indicating exceptionally strong speculative positions and bullish sentiment surrounding Ethereum. Analysts warn that while this rise signals short-term strength, long-term performance still depends on sustained adoption and investor confidence.

(ETH-BTC futures open interest ratio | Source: CryptoQuant)

Institutional demand surges and ETF expectations

The demand for Ethereum from institutional investors is steadily increasing, which is the underlying driving force. Investment funds currently hold approximately 6.1 million ETH, a 68% increase compared to the level in December 2024, and a significant 75% increase compared to April 2025. Meanwhile, the market premium for ETH funds has significantly widened, with a two-week average premium rate reaching 6.44, far above previous cycle peaks. This accumulation reflects substantial market and psychological effects, as institutions like BlackRock are expanding their exposure to Ethereum ETFs. Further analysis indicates that once ETH-based ETFs support Ethereum staking functionality, the inflow of institutional funds may accelerate further.

Macroeconomic Policy Background: The Boost from Regulatory Clarity

The growth in institutional demand coincides with the possibility of a clearer regulatory environment in the United States. Proposed legislation like the CLARITY Act aims to formally classify Bitcoin and Ethereum as digital commodities under federal law. This clarification of regulation will remove obstacles for more traditional financial institutions to safely participate in the Ethereum ecosystem, resonating with strong fundamentals.

Conclusion: Overall, Ethereum is undergoing a strong cycle led by trading volume in the Spot market, driven by sentiment in the derivation market, and supported by large institutional capital Holdings. Its breakthrough performance against the BTC exchange rate is not an isolated event, but a profound reflection of changes in market structure. As the regulatory outlook becomes clearer and the potential improvement of ETF functions materializes, this institutional bull market for Ethereum may have more solid support. Investors should closely monitor exchange rate changes and the flow of institutional funds.