Recent ETH Market Performance: Driven by Price Surges and On-Chain Activity
Since the beginning of the year, Ethereum has shown strong momentum, which has recently accelerated. In early August, ETH’s price briefly broke through $4,300, its highest level since late 2021, posting a gain of over 20% in the past seven days. The rally was even more pronounced in mid-to-late July, when ETH surged nearly 44% in two weeks, demonstrating robust market demand.
This wave of appreciation has been accompanied by a significant increase in on-chain activity. ETH’s daily transaction volume has hit a nearly one-year high, and the total amount of ETH staked on the network is approaching 30% of the total supply, as more holders choose to stake their ETH for native yield. In July 2025 alone, the Ethereum network processed approximately 46.67 million transactions and saw its active addresses reach 683,500—both new all-time highs. Investor confidence was further bolstered after U.S. regulators clarified that certain staking derivatives are not securities. Consequently, ETH balances on centralized exchanges have dropped to 15.35 million ETH, the lowest level since 2016, indicating that more assets are being locked up for the long term or deployed within the on-chain ecosystem.
The derivatives market echoes this bullish sentiment. ETH options open interest has climbed to a historic peak of $13.75 billion. With call options accounting for about 67% of this figure, the market’s bias towards further upside is clear. At the Chicago Mercantile Exchange (CME), a significant rise in ETH open interest reflects a large-scale influx of institutional capital. The distribution of options implied volatility also shows a concentration at higher strike prices—for instance, the $6,000 call options expiring in December hold the largest open interest, signaling strong medium-term optimism. Overall, ETH’s price action, on-chain data, and derivatives structure all point to a consensus of high confidence in Ethereum’s future.
The Institutional “Hoarding” War: The ETH Treasury Stock Model Takes Center Stage
As ETH’s price climbs, institutional interest has intensified, with the most notable development being the emergence of “ETH treasury stocks.” Two U.S.-listed companies, SharpLink Gaming (NASDAQ: SBET) and Bitmine Immersion Technologies (AMEX: BMNR), have aggressively purchased ETH, transforming themselves into ETH-holding entities.
To date, the combined ETH holdings of SBET and BMNR have already surpassed those of the Ethereum Foundation. SBET raised over $400 million through an at-the-market (ATM) equity offering to accumulate approximately 280,000 ETH (worth over $1 billion). Meanwhile, BMNR, chaired by veteran Wall Street strategist Tom Lee, has acquired about 300,000 ETH and announced an ambitious goal of eventually holding 5% of the global ETH supply. This positioning has led to BMNR being dubbed the “ETH version of a central bank,” a strategy reminiscent of MicroStrategy’s accumulation of Bitcoin.
The logic for both companies is to treat ETH as a core reserve asset, not just a speculative instrument. By raising capital in public markets to buy and stake ETH, they aim to capture both its long-term appreciation potential and the native yield from staking rewards, thereby strengthening their balance sheets. SBET has even started disclosing an “ETH per share” metric, positioning itself as a transparent bridge between traditional equity markets and decentralized finance.
This treasury stock phenomenon is directly altering ETH’s supply-and-demand dynamics. On one hand, sustained large-scale corporate buying tightens the circulating supply, providing price support. On the other hand, this corporate accumulation race has sparked industry-wide discussions. Ethereum co-founder Joseph Lubin endorsed the trend, calling it a “fierce contest” and quipping, “the game is on.” This competition is seen as a major catalyst for advancing DeFi, signaling that private enterprises will play an increasingly active role in ETH’s adoption and price discovery.
From an investment vehicle perspective, these treasury stocks offer greater flexibility than traditional ETFs. Standard Chartered Bank has pointed out that while these firms can rival ETFs in net holdings, they have superior advantages in valuation elasticity, capital management, and the use of derivatives. Recently, shares of SBET and BMNR have seen single-day gains exceeding 10%, highlighting the market’s enthusiasm. This trend is expected to have a profound long-term impact on ETH’s supply and institutional participation.
The Volatility Premium: A Window of Opportunity for Structured Products
Compared to Bitcoin (BTC), ETH has historically maintained higher price volatility. In May 2025, ETH’s implied volatility was at one point double that of BTC, marking the largest spread in five years. During that month, BTC’s short-term volatility fell below its 35% annualized level, while ETH’s remained elevated. This pushed the 30-day volatility differential between the two to its highest point since mid-2022, signaling that the market expects significantly larger price swings for ETH.
For structured product investors, high volatility creates more favorable return conditions. For instance, with ETH’s implied volatility elevated, strategies like selling put options can generate higher premiums than equivalent strategies on BTC. The annualized yields on dual-currency products linked to ETH are often higher than those for BTC-linked products under the same parameters, precisely because the additional return from ETH’s volatility premium compensates investors. This provides an opportunity for investors who are long-term bullish on ETH to convert its high short-term volatility into a stable source of income.
Of course, high volatility also demands more cautious risk management. If volatility is expected to decline and converge with BTC’s, then today’s high-coupon products offer a chance to lock in attractive yields. Conversely, if directional moves persist, investors must pay close attention to the risk buffers and trigger conditions of structured products. Broadly, the ETH-BTC volatility gap offers two strategic mindsets: “harvesting yield” and “capturing convexity.”
ETF Inflows and Corporate Buying: ETH Moves Toward Deep Institutionalization
As its market cap and application ecosystem expand, ETH is entering a more mature, institutionalized phase. This year, U.S. spot ETH ETFs have attracted over $6.7 billion in net inflows. In just six trading days in late July, these ETFs saw inflows of nearly $2.4 billion, far surpassing the $827 million that flowed into BTC ETFs during the same period. This reversal in capital flows reflects a shift in institutional preference, with ETH emerging as a new primary allocation choice.
Institutional participation extends beyond ETFs. In the last month alone, several U.S.-listed companies collectively purchased over $1.5 billion in ETH for their corporate treasuries. These “treasury stock” companies, along with Grayscale-style trusts and other funds, now hold a significant portion of the circulating supply, reducing the amount available for trading on the open market.
Institutionalization is also evident in derivatives markets. Open interest for ETH futures on the CME has hit new highs, with the annualized premium (basis) exceeding 10%, attracting arbitrage capital away from BTC. Asset management giants are also shifting their allocations. ARK Invest, for example, purchased 4.4 million shares of BMNR (approximately $116 million) in July for its ETFs while trimming positions in companies like Coinbase, indicating a strategic tilt towards ETH.
A favorable regulatory environment is also supporting this trend. The SEC has recently sent positive signals, clarifying that certain staking-yield tokens are not securities. The market now widely anticipates that spot ETH ETFs will eventually be permitted to distribute staking rewards to shareholders, allowing institutions to gain exposure not only to price appreciation but also to native network yield.
Given these factors, many analysts predict that ETH’s stature within institutional portfolios will continue to grow, potentially challenging BTC’s dominance in some areas.
Matrixport Structured Product Strategy: Four Solutions for Different Market Conditions
Against a backdrop of rising ETH volatility and sustained institutional inflows, Matrixport offers a diverse portfolio of structured products for investors with different risk appetites.
Conclusion
In summary, Ethereum’s current market is defined by strong price momentum, vibrant on-chain data, and rising institutional interest. Amid this optimistic backdrop, structured products offer investors a powerful toolkit to manage risk and customize returns.
Whether you aim to accumulate ETH at a discount, enhance yield with high coupons, or monetize market volatility, Matrixport provides tailored solutions. By strategically combining products like Accumulators, FCNs, Snowballs, and Dual-Currency Investments, our clients can balance offense and defense to pursue steady growth. As your partner, Matrixport helps you navigate market cycles and transform your digital assets into an active engine for wealth creation, always guided by your personal risk profile.
Author: Daniel Yu, Head of Asset Management (The views expressed in this article are solely those of the author)