Ethereum’s Comeback Fueled by Spot ETF Interest and Network Activity, Says Citi

ETH Reclaims Market Share as Spot ETF Inflows Surge Past $13B, Citi Says

Ether’s recent rally is being fueled by strong inflows into spot ETFs and improving on-chain metrics, according to a new research note from Citi.

The bank said ETH has staged a “powerful comeback” after a 55% drawdown earlier this year, outperforming peers and narrowing the gap with bitcoin. ETH is now up nearly 30% on the year, with Citi analysts noting the token is gaining market share rather than giving it up — a reversal from late 2025.

Cumulative inflows into spot ether ETFs have climbed to $13 billion, up sharply from $2.6 billion in April. Citi analysts Alex Saunders and Nathaniel Rupert wrote that ETF flows are becoming a more direct driver of price momentum.

Citi also highlighted the growing participation of ETH treasury firms, which began accumulating in May. Their holdings now approach $10 billion, while the market value of these firms has risen alongside ether’s price.

Blockchain data suggests larger holders are accumulating ETH while smaller investors reduce exposure. The ongoing decline in ETH balances on centralized exchanges signals a shift back to self-custody and on-chain use, which may be contributing to upward price pressure by limiting available supply.

While the rally has been steep, Citi emphasized it’s not purely driven by technicals. On-chain activity is rising and macro conditions — what the bank described as a “goldilocks” backdrop — are supporting further upside. Regulatory clarity and ETF-driven narratives are reinforcing the bullish setup, the report added.