Citi Notes Renewed Bullish Momentum for Ether on ETF Inflows and Blockchain Expansion

Ether Rally Accelerates as Spot ETF Inflows Top $13B: Citi

Ether (ETH) has mounted a significant recovery in 2026, supported by booming demand for spot ETFs and strengthening on-chain fundamentals, according to a Tuesday report from Citi.

After falling more than 55% earlier this year amid macro headwinds, ETH is now up nearly 30% year-to-date, challenging bitcoin’s (BTC) dominance in a way not seen since late 2025. Unlike previous cycles, Citi analysts noted, ether is now gaining market share rather than losing it.

A key driver of this momentum has been the surge in demand for spot ether exchange-traded funds. Net inflows into these products have climbed to over $13 billion, compared to just $2.6 billion in April, Citi’s Alex Saunders and Nathaniel Rupert wrote. As ETF balances grow, they are exerting increasing influence on price action.

Institutional activity is also picking up. Ether treasury buyers began accumulating aggressively in May, with collective holdings now nearing $10 billion based on current prices. The market value of these firms has expanded alongside ETH’s rally, the bank noted.

On-chain data shows a shift in investor behavior: large wallets are accumulating ETH, while smaller holders are taking profits. At the same time, ETH balances on centralized exchanges continue to decline — a signal of supply tightening as tokens move to self-custody.

Citi emphasized that the rally isn’t solely technical. On-chain engagement is rising, and fundamentals are improving. Combined with a favorable macro backdrop — which analysts described as “goldilocks-like” — and supportive regulatory signals, ether appears positioned for continued strength.