Ether’s Comeback Gains Momentum as Spot ETF Inflows Surge Past $13B: Citi
Ether (ETH) has staged a strong recovery in 2026, outpacing many of its peers amid renewed investor interest and rising institutional exposure, according to a Tuesday research note from Citi.
After falling more than 55% earlier this year due to global macro pressures and risk-off sentiment, ETH is now up nearly 30% year-to-date, making one of its strongest pushes against Bitcoin’s (BTC) dominance since late 2025. This time, however, it’s gaining market share — not losing it — the bank said.
A major catalyst behind the rally is growing demand for spot ether exchange-traded funds, with cumulative net inflows now exceeding $13 billion, a sharp increase from just $2.6 billion in April. Analysts Alex Saunders and Nathaniel Rupert noted that these inflows are now having a direct impact on price behavior.
Citi also pointed to a sharp uptick in institutional treasury activity. Ether-focused treasury firms began accumulating in May and now hold close to $10 billion in ETH, with valuations of those firms rising alongside the asset.
On-chain data supports the bullish trend. Large holders have resumed accumulation while smaller investors appear to be reducing exposure. ETH reserves on centralized exchanges continue to fall, indicating a move toward long-term self-custody and a tightening supply dynamic that may be contributing to the rally.
Importantly, the analysts emphasized that the move isn’t solely speculative. Increased on-chain activity suggests a more fundamental shift is underway. Coupled with a favorable macroeconomic backdrop — described as a “goldilocks” environment — and improving regulatory clarity, Citi sees further upside potential for ether in the months ahead.
