Ethereum’s rally is outpacing bitcoin on the back of heavy spot ETF inflows and newly active corporate treasuries, while bitcoin’s futures and options positioning has shifted more defensive following a hotter-than-expected U.S. producer-price print, according to K33 Research’s latest report dated Aug. 19.
The Oslo-based research firm says ETH has climbed roughly 70% since June 1 versus about 9% for BTC, lifting the ETH/BTC ratio above 0.037 to a new yearly high. K33 attributes ether’s strength to a two-pronged demand shock. U.S. spot ETH ETFs have taken in about $9.4 billion since June 2, and digital asset treasury holdings surpassed 2% of circulating ETH for the first time, up from 0.2% two months ago, The Block’s data dashboard shows.
Together, ETFs and DATs, like Tom Lee’s BitMine Immersion and Joe Lubin’s SharpLink Gaming, have absorbed around 3.7% of ether’s supply since early June, a notable figure given that ETH’s market value is about one-fifth of bitcoin’s.
The firm also flags concentrated demand for leveraged ether exposure. VolatilityShares’ 2x Ether ETF has grown its ether-equivalent exposure by about 456,000 ETH since June 2 and now represents roughly 61% of CME ETH futures open interest, around 1.14 million ETH-equivalent as of Aug. 18, indicating persistent demand for amplified ETH beta products alongside spot ETF buying.
Bitcoin cool
On the bitcoin side, K33 highlights a clear cooling in listed derivatives after last week’s macro surprise. July PPI rose 0.9% month-on-month versus a 0.2% consensus, an upside shock that knocked BTC from around $121,000 to near $117,700 within minutes and pressured risk assets broadly. Crypto liquidations crossed $1 billion within hours of the data release, as The Block reported.
CME bitcoin futures premiums, which briefly reached double digits at the highs, compressed back to roughly 5.5% annualized by Monday, the report notes. Notional CME open interest ticked up by roughly 4,800 BTC to around 143,000 BTC but remains near early-May lows, while perpetuals open interest sits close to 300,000 BTC. According to K33, this setup can exacerbate squeezes in either direction. One-month options skew climbed to its highest level in nearly two years as traders paid more for downside protection.
Record Q2, soft August
Spot bitcoin ETF assets ended Q2 at a record $134.6 billion, aided by price appreciation and renewed allocations. Institutions disclosed $33.6 billion in holdings via 13F filings, with market-making firms prominent among top owners.
BTC Spot ETF Ownership By Investor Type (Quarterly). Image: K33
Into August, however, weekly BTC net flows were muted to mildly negative, K33 notes, even as ETH products continued to attract capital. A snapshot from the report shows average daily BTC spot volume near $3.4 billion over the last week and aggregate BTC futures and perpetuals open interest around $59.4 billion. Daily spot activity spiked above $6 billion on Aug. 14 as volatility picked up following the PPI release.
On the asset correlation front, data shows BTC’s 90-day relationship with ETH holding above equilibrium, with softer linkages to gold and the S&P 500, a mix that, in K33’s view, keeps room open for two-way volatility as major resistance levels loom.
© 2025 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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