Institutional investment in Ethereum has skyrocketed, surging by a staggering 145% over the past year due to increased regulatory clarity and the approval of spot ETFs. This shift is driving a significant capital rotation from Bitcoin as institutional players seek out Ethereum’s growing appeal for its staking yields and DeFi applications. Major firms, including strategic Ethereum reserve companies and ETF providers, have actively amassed ETH holdings in Q4 2025, leading to Ethereum’s market cap surpassing $4,000 and Bitcoin seeing net outflows. This trend echoes a similar pattern as Bitcoin’s 2024 ETF approvals, where institutional interest fueled rapid growth. Experts predict continued momentum for Ethereum, with growing adoption of spot ETFs expected to further impact the landscape.