LIVE MARKETS-Ether's rally continues to roll, outpaces bitcoin in 2025

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ETHER'S RALLY CONTINUES TO ROLL, OUTPACES BITCOIN IN 2025

Ether surpassed bitcoin on a year-to-date performance in August, benefiting from record inflows into exchange traded products tracking the world's second biggest cryptocurrency as confidence in the industry continues to grow.

The token ETH= was last at $4,655.2, trading near its highest level since late 2021 and taking its year-to-date gains to almost 39%, compared to bitcoin's BTC= near 29% jump.

It, however, sits more than 3% away from its all-time high of $4,867.6 hit back in November 2021.

Spot ether exchange traded products have seen solid inflows of late, with U.S. ETPs recording a net inflow of $1.1 billion on August 11, the biggest one-day move on record, according to J.P.Morgan.

Ether has exploded in popularity among small public companies who have been rushing to add it to their coffers over bitcoin. Peter Thiel-backed BitMine BMNR.N and gaming media network GameSquare GAME.O are some of the public companies accumulating ether in recent months.

It has become the token of choice for those looking for more active returns, unlike bitcoin, which solely relies on price appreciation. Ether can be used in staking, a practice where holders lock up their tokens to support the ethereum network in exchange for rewards.

"Ethereum's move isn't just riding broader market momentum, it's underpinned by the strongest fundamentals in years," said Roshan Robert, CEO of crypto exchange OKX.

Another reason for ether's surge has been the passage of the Genius Act, a law to create a regulatory regime for dollar-pegged cryptocurrencies known as stablecoins. Prices of other crypto assets also rose, on hopes the law would lead to increased acceptance.

Earlier in the day, Standard Chartered raised its year-end target for the token to $7,500 from $4,000, citing improvement in industry engagement and uptick in holdings of the cryptocurrency in recent months.

(Shashwat Chauhan)

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