Ethereum ETFs Shatter Records as Institutional Demand Explodes
Wall Street's latest crypto obsession isn't Bitcoin—it's ETH wrapped in a regulatory bow.
The $64,000 Question: Why Now?
After years of regulatory foot-dragging, Ethereum ETFs just posted their biggest inflows since launch. Not even the SEC's infamous 'Howey test' gymnastics could stop the stampede.
Pension funds and boomer investors—who wouldn't know a smart contract if it bit them—are suddenly piling in. Maybe because BlackRock's prospectus doesn't mention 'degen apes' anywhere.
The irony? These same institutions spent 2023 calling ETH a security. Now they're paying 2% fees to hold it in a format they understand: ticker symbols and quarterly reports.
One hedge fund manager (who requested anonymity) put it best: 'We don't believe in blockchain—we believe in not missing the next gold rush.'
$3,638 ETFs achieved a notable milestone by recording their 20th consecutive day of net inflows, marking the longest streak of positive cash FLOW since their inception. According to data from SoSoValue, these ETFs saw a net inflow of $17 million, with BlackRock’s ETHA leading the way at $18.2 million, while Grayscale’s ETHE experienced a $6.8 million outflow. This surge surpasses the previous 19-day record from May 16 to June 12 in both duration and volume, drawing $5.4 billion in fresh capital and bringing the total net asset value of these ETFs to $21.52 billion, representing 4.77% of Ethereum’s market capitalization.
ContentsSpot ethereum ETFs Set New RecordMarket Rotation Shifts from Bitcoin to Ethereum
Spot Ethereum ETFs Set New Record
The majority of the $17 million inflow into ETFs on July 31 was amassed by BlackRock’s flagship ETHA, with an additional $5.62 million coming from Fidelity’s FETH fund. This prolonged inflow series has attracted nearly four times more capital than the previous record, reflecting the market’s confidence in the Ethereum narrative. During this three-month period, only nine days saw negative flows, indicating a steady demand for spot Ethereum ETFs.
With the growing inflows, the asset value under management for Ethereum ETFs has reached $21.52 billion, accounting for 4.77% of the total supply. Analysts suggest that this figure indicates a continued Flow of funds into Ethereum without imposing additional pressure on the blockchain’s profitability.
Market Rotation Shifts from Bitcoin to Ethereum
Presto Research analyst Min Jung observes that investors who missed out on the mid-June Bitcoin
$114,773 surge, which reached $123,000, have started pivoting toward Ethereum. The same day, there was a net outflow of $114.83 million from spot Bitcoin ETFs, further proving the shift of capital from the leading cryptocurrency to the second-largest asset.
Investor interest isn’t limited to Ethereum alone. Recently, Grayscale, Franklin Templeton, and Canary Capital submitted updated spot Solana
$169 ETF documents to the SEC, suggesting an acceleration in the regulatory process. The momentum is majorly driven by SEC Chairman Paul Atkins’ statement declaring that “most cryptocurrencies are not securities,” encouraging issuers to pursue new product filings.
Analysts point out that the success of Ethereum ETFs might pave the way for ETFs based on other prominent altcoins like XRP and Dogecoin
$0.20557, leading to a diversified portfolio of coin-based ETFs for the rest of the year.
