Institutional Flows Toward Ethereum Strengthen

5th June 2025 • 10 mins read

This Week’s Recap

1. Bybit Reveals Security Overhaul After $1.4 Billion Hack: After a February breach that saw $1.4 billion in liquid-staked Ether and ERC-20 tokens drained, Bybit announced a comprehensive three-pronged security upgrade. The exchange completed nine security audits—both internal and external—and implemented 50 new security measures, including tightened cold wallet protocols and multiparty computation for wallet protection. Bybit reports it has nearly returned to pre-hack liquidity levels, and its LazarusBounty program has already recovered over $2.3 million in stolen funds. 
2. SEC Dismisses Lawsuit Against Binance: The U.S. Securities and Exchange Commission voluntarily dropped its civil action against Binance and founder Changpeng Zhao with prejudice, reflecting a shift toward a more crypto-friendly regulatory stance under President Trump’s administration. This decision follows Binance’s November 2023 criminal settlement, which included a $4.32 billion penalty and a prison term for Zhao, and underscores the SEC’s new focus on crafting tailored oversight for digital assets. Industry participants view the dismissal as a significant win for innovation amid ongoing efforts to clarify the U.S. crypto regulatory framework
3. Circle Internet Group Plans IPO to Test Crypto Market Appetite: Circle, the issuer of USDC, filed for an initial public offering on the NYSE under the ticker CRCL, aiming to list 32 million shares at $27–28 each, potentially raising $880 million and valuing the company around $6.2 billion. The company’s growth has been driven by interest income earned on its reserve assets and a desire to diversify revenue beyond transaction fees. With U.S. regulators increasingly supportive—highlighted by the proposed GENIUS Act’s stablecoin framework—market watchers see Circle’s IPO as a bellwether for broader investor confidence in crypto firms. (barrons.com)
4. Singapore Orders Local Crypto Firms to Cease Overseas Activity by June 30: The Monetary Authority of Singapore (MAS) sent a directive to domestic crypto companies, requiring them to halt overseas token-related services by the end of June or face fines up to SGD 270,000 (about USD 200,000). This move aims to minimize regulatory arbitrage and ensure firms comply with MAS licensing requirements before pursuing international markets. Companies targeting cross-border activities are now racing to adapt their business models or risk enforcement actions. 
5. BlackRock Dumps $561 Million in Bitcoin to Acquire Ethereum: On June 2, BlackRock transferred roughly 300 BTC batches—totaling 5,362 BTC and worth $561 million—to Coinbase Prime, while simultaneously withdrawing 27,241 ETH ($69 million) from the platform. The timing aligns with a $561 million outflow from BlackRock’s Bitcoin ETF over two days, illustrating a rotation from BTC into ETH. Despite this selloff, BlackRock’s total BTC spot ETF flows remain strong at $48.4 billion, and its concurrent ETH purchases contributed to a series of 11 consecutive days of inflows into Ethereum ETFs. 
6. Galaxy Digital Buys 137K ETH as BlackRock’s Ethereum ETF Tops $4 Billion: Galaxy Digital quietly withdrew $233 million worth of ETH (108,000 ETH) from exchanges and transferred it to a whale wallet on June 4, reflecting deep confidence in Ethereum’s near-term outlook. Simultaneously, BlackRock’s iShares Ethereum Trust added over 19,069 ETH, bringing its total ETH holdings to 1.43 million. Overall, ETH spot ETFs saw net inflows of $109.5 million, signaling a notable shift among institutions from Bitcoin to Ethereum. 
7. House Introduces Digital Asset Market Clarity Act: On May 29, bipartisan members of the U.S. House proposed the Digital Asset Market Clarity Act to delineate regulatory jurisdiction between the CFTC and SEC. The bill mandates crypto dealers keep customer funds segregated and disclose conflicts of interest. It aligns with the Ripple precedent by clarifying that secondary market transactions need not classify tokens as securities, and industry advocates call it a pragmatic step toward coherent regulation. (axios.com)
8. Jamie Selway Tapped to Lead SEC’s Trading and Markets Division: Reuters reports that the SEC appointed Jamie Selway—formerly of Sophron Advisors, crypto firm Blockchain, and BATS Global Markets—to helm the trading and markets division. Selway’s background in market structure and crypto-related advisory roles is expected to influence how SEC handles broker-dealer and exchange regulations. The division’s staffing challenges and regulatory workload suggest his leadership will be closely watched by industry insiders. 
9. SEC to Revamp Crypto Regulation Tactics, Ditching Enforcement-Driven Approach: SEC Chair Paul Atkins announced the agency will shift from primarily enforcement actions toward rule-making via a public notice-and-comment process. This move is intended to provide greater regulatory clarity and predictable frameworks for crypto firms. Stakeholders anticipate a series of guidance updates that prioritize transparency and collaboration over litigation. (defi-planet.com)
10. SEC’s 2025 Guidance Clarifies Which Tokens Aren’t Securities: The SEC’s 2025 rules state that tokens primarily used as tools or goods—such as in-game assets, digital access passes, or nontransferable membership credits—are unlikely to be deemed securities if not marketed for profit-making. This guidance helps token issuers and platforms understand compliance requirements, focusing enforcement on tokens promoted as investment vehicles. Legal experts believe this clarity will encourage more utility token innovation while reducing regulatory uncertainty. (cointelegraph.com)
11. BlackRock Buys $77 Million in Ethereum, Signaling Shift to Utility: A June 4 Crypto Rover tweet highlighted that BlackRock purchased $77 million worth of ETH, indicating a strategic rotation into utility assets. As institutions seek differentiated exposure within digital assets, Ethereum’s staking yields and DeFi potential are attractive drivers. This move underscores a broader trend where large asset managers allocate to ETH for diversification and yield generation. (capitoltrades.com)
12. Tether Acquisition Signals Move Into Commodities: On May 28, Tether acquired a 70 percent stake in Adecoagro, a Latin American agriculture and energy firm, signaling its intention to integrate USDT into commodity trading. CEO Paolo Ardoino emphasized that commodities would be a major growth driver for USDT over the next five years, as the stablecoin looks to expand beyond purely crypto-trading liquidity. This pivot toward real-world asset integration underscores Tether’s strategy to leverage its user base—already in the hundreds of millions—to facilitate trade in goods like rice and bio-ethanol. (axios.com)
13. Tether Invests in Orionx to Drive Latin American Stablecoin Adoption: Messari commentary reveals that on June 3, Tether invested in Orionx to foster USDT usage in regions like Chile, Peru, Colombia, and Mexico where financial exclusion remains high. Latin America processed over $400 billion in crypto transactions from July 2023 to June 2024, mostly in stablecoins, indicating a robust market for digital dollars. This strategic investment aligns with Tether’s goal to build real-world applications for USDT and solidify its status as the leading stablecoin issuer. (messari.io)
14. Stablecoin Market Cap Hits $244 Billion in May 2025: On June 4, TradingView data showed that stablecoin supply reached $244 billion, a nearly 3 percent increase in one month, led by Tether’s USDT adding $4 billion in May alone. While some stablecoins minted more aggressively than others, USDT remains the market’s heavyweight, commanding over 75 percent of stablecoin trading volume. The growth reflects heightened demand for on-chain liquidity amid volatile crypto markets. (tradingview.com)

Bitcoin Market Analysis

Over the past seven days, Bitcoin traded between intraday lows near $103,400 and highs near $108,667, ultimately settling at $105,225 on June 5, 2025, down 0.53 % for the day. Key pivot levels have been $103,000 as support and $108,000 as resistance. A sustained break above $108,000 would expose $110,000–$112,000 as the next targets, whereas a failure to hold $103,000 could prompt a retest of $100,000.

Source: https://altfins.com/technical-analysis

Technical indicators for Bitcoin show a neutral bias across both oscillators and moving averages. The 14-day RSI on the daily chart hovers around 62, indicating modest bullish momentum while still leaving room before overbought territory. On June 3, the MACD line crossed above its signal line, signaling short-term upside pressure. Meanwhile, Bitcoin remains above its 50-day simple moving average near $87,000 and well above its 200-day simple moving average around $95,000, confirming that both the intermediate and longer-term uptrends remain intact despite recent consolidation.

On June 4, Bitcoin broke below the lower trend line of a rising-wedge pattern that had formed under $120,000 and fell beneath the prior all-time high at $108,000, suggesting potential near-term weakness with downside toward $100,000. Rising wedges usually appear at the end of an uptrend and signal a possible reversal when price breaks below the lower trend line, so waiting for the completed breakout helped avoid false signals. The short-term trend is neutral, the medium-term and long-term trends remain strongly bullish, and momentum has turned bearish since the MACD cross. Price is neither overbought nor oversold, and the nearest support zones are $100,000 and $90,000 while resistance zones sit at $108,000 and $120,000. A recovery above $108,000 could set up a run toward $120,000, so setting a price alert near $100,000 is advisable for the next buying opportunity.

Over the past week, Trump Media & Technology Group filed with NYSE Arca to launch a Truth Social Bitcoin ETF, partnering with Crypto.com and Yorkville Advisors—adding to an already crowded ETF landscape. MicroStrategy announced a $250 million preferred-stock offering carrying a 10 % annual dividend to fund additional Bitcoin purchases, leveraging its roughly 581,000 BTC treasury as collateral. Semler Scientific acquired 185 BTC for $20 million between May 23 and June 3, bringing its holdings to 4,449 BTC and underscoring continued corporate accumulation of digital assets. Softer U.S. macro prints—such as declining consumer confidence and an ISM services reading below 50—have heightened Fed rate-cut expectations, which analysts argue could fuel Bitcoin’s next leg higher. Meanwhile, Elon Musk’s June 1 announcement of XChat with “Bitcoin-style encryption” failed to buoy prices, and some technical models now project a drop toward $97,000 if BTC cannot hold above $104,000.

Between March 1 and June 4, 2025, a new cohort of Bitcoin whales, wallets holding at least 1,000 BTC with coins under six months old, more than doubled their holdings from roughly 500,000 BTC to 1.1 million BTC (about $63 billion), increasing their share of circulating supply from 2.5 percent to 5.6 percent and effectively removing ten months’ worth of mining output from the market. This surge in fresh accumulation signals that well-capitalized buyers are building new positions rather than redistributing older holdings, tightening available supply and historically foreshadowing periods of sharp upside volatility. 

Source: https://cryptoquant.com/

Since the start of 2025, on-chain data from Glassnode shows that entities holding between 10,000 and 100,000 BTC have continued offloading legacy positions even as institutions and sovereign wealth funds aggressively accumulate. In January, this cohort controlled approximately 1.9 million BTC; by early June, their holdings had declined to about 1.6 million BTC. Those coins were largely acquired between $0 and $700 and have been in wallets for eight to sixteen years. Now, they are changing hands into the exchange flows and treasury purchases of well-capitalized buyers. In practical terms, the long-time holders are distributing low-basis supply to a “new guard” comprising corporate treasuries, government entities, and spot ETF vehicles. This transfer of supply dynamics tightens the available float and lays a foundation for upward price pressure once leveraged positions clear.

Source: https://x.com/woonomic

At the same time, Willy Woo’s “Bitcoin Open Value” chart highlights that open interest in perpetual futures and other derivatives has surged to levels reminiscent of late 2024. Elevated open interest often precedes forced liquidations, which can purge over-leveraged “paper bets” and remove speculative drag from price action. In 2025, the market has seen open interest climb above previous local peaks, suggesting that before Bitcoin can mount a sustainable rally to new all-time highs, it must first digest and unwind those leveraged exposures. For traders and investors, the key takeaway is that the reallocation from legacy whales to institutional and sovereign buyers coincides with a precarious build-up of derivatives risk. Monitoring funding rates, open interest trends, and on-chain exchange flows will be critical to identify when the market has cleared the overhang and is ready for its next leg higher.

Ethereum Market Analysis 

Over the past seven days, Ethereum traded between approximately $2,529 and $2,652, ultimately closing at $2,607.35 on June 5, 2025, according to Yahoo Finance. Intraweek support formed near $2,500, while resistance has been evident near $2,700; a sustained break above $2,700 would expose $3,000, whereas failure to hold $2,500 could see a dip toward $2,300 

Source: https://altfins.com/technical-analysis

From a technical standpoint, Ethereum’s momentum is currently mixed: the 14-day RSI sits at roughly 52.7, indicating neutral conditions, while the MACD reading of –2.34 as of the June 5 close reflects slight bearish pressure. At the same time, price remains comfortably above the 50-day EMA near $2,305—signaling solid medium-term support—yet continues trading below the 200-day SMA around $2,689, suggesting long-term upward conviction has not fully reasserted. This month, ETH has been rejected three times at the $2,700 zone, marking a stiff resistance area; the market is thus at a crossroads between gathering enough buy-side strength to clear $2,700 and confirm an uptrend, or forming a bearish Triple Top pattern if it breaks below the $2,400 neckline. If ETH can reclaim and hold above $2,700 with conviction, traders would view that as confirmation of renewed upside; conversely, a sustained move under $2,400 would validate the Triple Top and open the door to $2,100. In terms of trend structure, the short- and medium-term trends remain up while the longer-term trend sits neutral, and although momentum is technically still bearish, the rising MACD histogram bars suggest that downside momentum may have bottomed. Price is neither overbought nor oversold—RSI remains between 30 and 70—so key levels to watch are $2,400 on the downside and $2,760–$2,700 on the upside, with $3,000 looming as secondary resistance; a potential fundamental catalyst could arrive later in 2025 if U.S. regulators allow ETH spot ETFs to stake Ethereum, which is worth monitoring via a price alert.

Over the past week, Ethereum’s institutional narrative has picked up significant steam. On June 2, Kyle Baird reported that spot ETH ETFs pulled in $578 million over three weeks—nearly half of that coming just last week—while network fundamentals, including the recently deployed Pectra upgrade, have reignited institutional confidence. In parallel, SharpLink Gaming closed a $425 million private placement led by ConsenSys, becoming the largest publicly traded ETH holder and signaling a major shift in corporate treasury strategies toward Ethereum. Finally, the Enterprise Ethereum Alliance announced new leadership appointments on June 3 aimed at accelerating enterprise adoption, with board seats filled by representatives from JP Morgan, Microsoft, ConsenSys, and other key players underscoring Ethereum’s growing appeal across Fortune 500 companies.

Source: https://cryptoquant.com/insights/quicktake

Exchange supply of Ether has now contracted to levels not seen since 2015–2016, its first year on the market, underscoring a dramatic shift of ETH into long-term holdings. By comparison, Bitcoin’s on-exchange balance has only just retraced to 2018 levels despite a heavy marketing push from proponents like “Strategy” and recent pro-crypto U.S. governmental support. Both networks have shed roughly 30 percent of their exchange-held supply since early 2021, signaling a broad-based demand surge. Notably, Ethereum has achieved this supply contraction without the same promotional fervor enjoyed by Bitcoin—its fundamentals and growing institutional interest have driven coins off exchanges and into deep cold storage at nearly the same pace as BTC. This trend suggests that, even amid differing marketing tailwinds, ETH’s intrinsic utility and adoption continue to resonate with investors, tightening available float and setting the stage for future price appreciation.

BlackRock’s Shift from Bitcoin into Ethereum

Over the first days of June 2025, on-chain data revealed that BlackRock systematically liquidated roughly 5,362 BTC—about $561 million in notional—via Coinbase Prime, beginning with a 300 BTC transfer on June 2, 2025. This move marks a deliberate shift away from Bitcoin, as BlackRock had previously maintained a sizeable Bitcoin reserve through its iShares Bitcoin Trust. Selling legacy BTC positions at prices far above their original acquisition costs underscores a strategic reallocation amid evolving market dynamics, where “old guard” holders are distributing supply.

Concurrently, BlackRock’s Ethereum holdings swelled as it withdrew 27,241 ETH—approximately $69.25 million—from Coinbase during the same window, signaling a rotation into ETH. Observers pointed out that this was more than a simple swap; it represented a $130 million portfolio shift favoring Ethereum’s expanding DeFi ecosystem, staking potential, and upcoming protocol upgrades. By reallocating capital into ETH, BlackRock appears to embrace Ethereum’s evolving narrative and yield opportunities over Bitcoin’s store-of-value thesis.

Source: https://www.tradingview.com/

This rotation is vividly reflected in the ETH/BTC chart: after bottoming near 0.018 BTC in mid-April, ETH/BTC reversed sharply, rallying to approximately 0.025 BTC by early June (see chart). That bounce coincides with BlackRock’s large-scale reallocation, suggesting that institutional flows are tilting markets in Ethereum’s favor. From a market-structure perspective, such portfolio rotations often presage heightened volatility in the ETH/BTC pair, so traders should monitor derivatives funding rates and spot ETF creation flows for further institutional activity. Meanwhile, Bitcoin’s support near $100,000 could be tested if selling pressure persists, but BlackRock’s dual action highlights a strategic pivot toward Ethereum’s growth story—suggesting that ETH may indeed outperform BTC in the near term.

Mark Your Calendars

Economic Data Releases:

• June 6, 2025 (Friday): U.S. employment report for May 2025 (nonfarm payrolls, unemployment rate, hourly wages)
• June 6, 2025 (Friday): Consumer credit for April 2025
• June 11, 2025 (Wednesday): Consumer Price Index (CPI) for May 2025
• June 11, 2025 (Wednesday): Core CPI for May 2025

Token Unlock

• June 9, 2025: MOVE (MOVE) unlocks $7.16 M (1.96 % of market cap)
• June 10, 2025: EIGEN (EIGEN) unlocks $1.92 M (0.43 % of market cap)
• June 12, 2025: APT (APT) unlocks $54.63 M (1.79 % of market cap)