Ethereum's Potential to Outperform Bitcoin in Institutional Adoption Landscape
Galaxy Digital CEO Forecasts Ethereum's Rise Over Bitcoin
Galaxy Digital CEO Mike Novogratz has expressed a bold prediction that Ethereum (ETH) could surpass Bitcoin (BTC) in performance within the next three to six months, driven by increasing institutional interest and structural advantages. Novogratz pointed to Ethereum's diminishing circulating supply, its integral role in decentralized finance (DeFi), and growing corporate adoption as factors positioning ETH as a "growth asset" compared to Bitcoin's narrative as "digital gold." This forecast comes on the heels of Galaxy Digital's strategic asset reallocation, including the sale of 10,000 Bitcoin in favor of Ethereum [1]. Institutional flows into Ethereum-based products, particularly Ether ETFs, have created a supply-demand disparity favoring ETH over BTC, with Ether ETFs outperforming Bitcoin-based products for six consecutive days [2].
Ethereum's Price Surge and Institutional Momentum
Novogratz emphasized a crucial price threshold of $4,000 for Ethereum, suggesting that breaching this level could affirm its technical resilience and utility beyond speculative trading [1]. As of July 25, 2025, Ethereum was trading at $3,756, reflecting a 4% daily gain and a 50% surge in price over the past month. The ETH/BTC ratio has also climbed 36%, highlighting institutional momentum [1]. Companies like BitMine and Ether Machine, collectively holding over 1.3 million ETH, have contributed to Ethereum's supply constraints, further bolstering its price trajectory [1].
Institutional Adoption as Key Catalyst for Ethereum's Growth
Novogratz acknowledged potential macroeconomic and regulatory risks, such as shifts in U.S. Federal Reserve policy or political developments, which could impact Bitcoin's path. However, he anticipates that both cryptocurrencies will benefit from renewed institutional involvement in the near future [4]. Surpassing $4,000 would not only signal technical strength for Ethereum but also validate broader market confidence in its role as a foundational layer for Web3 applications [6]. Recent milestones in Ethereum's institutional adoption, including spot ETF approvals surpassing a $10 billion asset threshold, demonstrate increasing faith in its utility and governance model [3]. This divergence from traditional market rankings underscores a changing sentiment among institutions towards Ethereum's potential as a core asset for the next phase of crypto adoption [3].