- Circle’s IPO spotlights Ethereum as USDC’s backbone and a strategic DeFi infrastructure layer.
- ETF and on-chain flows show growing institutional confidence in ETH over BTC heading into Q3.
When Circle [USDC] filed for its long-awaited $1.1 billion IPO, most headlines focused on what it meant for stablecoins and regulatory clarity.
But there’s another quiet winner quietly emerging: Ethereum [ETH].
With more than half of USDC’s circulating supply anchored on its rails, Ethereum isn’t just the technical backbone – it’s the stealth beneficiary of Wall Street’s growing bet on tokenized dollars.
Ethereum is at the center of the stablecoin ecosystem
Ethereum dominates USDC’s on-chain presence, holding $36.7 billion—over 50% of the stablecoin’s circulating supply—on its mainnet.
This concentration highlights Ethereum’s key role in DeFi, providing deep liquidity pools, advanced smart-contract infrastructure, and a thriving developer ecosystem, all of which enhance USDC’s utility.
Source: DeFiLlama
With Circle’s IPO spotlighting stablecoins, institutional investors will closely examine the infrastructure behind them.
Ethereum stands out as a strategic asset, strengthened by every tokenized dollar flowing through its network.
Beyond its mainnet, Circle has distributed $10 billion worth of USDC across Ethereum Layer 2s like Arbitrum, Base, and Polygon.
This expansion reduces congestion, enhances scalability, and reinforces Ethereum’s central role in stablecoin infrastructure, even as adoption spreads to cheaper, faster networks.
ETFs show steady institutional interest
While Circle’s IPO casts Ethereum in a bullish light, ETF flow data paints a more nuanced picture.
According to SoSoValue, spot ETH ETFs have seen net inflows on eight of the past ten trading days, totaling $25.2 million as of the 6th of June.
Total assets held stood at $9.4 billion at press time, even as ETH’s price dips below $2,500.
Source: SoSoValue
Though daily flows are off their early June highs, the trend still suggests quiet confidence among institutions.
These inflows, though modest, reflect Ethereum’s perceived value as a maturing investment vehicle in regulation.
Money is rotating into ETH. Will ETH close ahead of BTC in Q3?
While Bitcoin ETFs bled over $1.4 billion since the 22nd of May, Ethereum products quietly absorbed $579 million, showing sustained green inflows nearly every day.
Source: X
Ethereum’s ETF momentum aligns with strong on-chain signals, leading 24-hour net flows on bridges and posting the largest stablecoin supply growth, per Artemis.
Despite Layer 2 expansion, these flows reinforce confidence in Ethereum’s base-layer strength.
As Q3 approaches, the key question remains: Can ETH outpace Bitcoin in flows, performance, or both?
