US Spot Ethereum ETFs Now Control 5%+ of ETH Supply—Here’s Why It Matters
Wall Street's crypto grab hits a milestone: Ethereum ETFs now hold a staggering 5% of all ETH in circulation. Let that sink in.
How did we get here?
The ETF gold rush isn't just about Bitcoin anymore. Institutional players are piling into ETH—wrapped in the comfortable familiarity of exchange-traded products. No private keys, no gas fees, just ticker symbols and quarterly reports.
What does this mean for decentralization?
Purists are sweating. When 1 in 20 ETH sits in custodial wallets, it reshapes the network's power dynamics. Validators might need to start courting BlackRock instead of Reddit communities.
The irony? Crypto's anti-establishment darling now has its fate tied to the very financial systems it sought to disrupt. But hey—at least the suits finally stopped calling it a 'shitcoin.'
Spot Ethereum
$4,240 ETFs in the US hold more than 5% of the ETH supply according to blockchain data. SoSoValue reports that these ETFs’ on-chain assets have increased to 6.3 million ETH, valued at $26.7 billion. This amount corresponds to approximately 5.1% of the total ethereum supply. However, there was a net outflow of $196.6 million from spot ETFs on Monday, marking the second highest single-day outflow since their launch. On the same day, spot Bitcoin
$115,105 ETFs experienced a $121.8 million outflow.
Exceeding the 6.3 Million ETH Threshold in ETFs
According to data by SoSoValue, the amount of ETH held by US spot Ethereum ETFs has reached 6.3 million coins. This level, representing about 5.1% of the circulating supply of ETH, demonstrates the significant achievements of these ETFs in a short time. The numbers clearly reflect the influence of these exchange-traded funds on the Ethereum market.
In terms of price, ETH is trading at $4,249 with a 0.65% decrease over the last 24 hours, as reported by CryptoAppsy. During the same period, BTC is trading at $115,055, reflecting a 0.32% decrease.
Eight-Day Inflow Streak in Ethereum ETFs Breaks
The $196.6 million net outflow from Ethereum ETFs on the first day of the week registered as the second largest daily outflow since their inception. Prior to this, there was a cumulative inflow of $3.7 billion into the ETFs over eight trading days. On a weekly scale, net inflows increased to $2.85 billion last week, up from $325.8 million the previous week.
On the Bitcoin side, a $121.8 million outflow was observed from spot ETFs on Monday. Following a $14.1 million outflow on Friday, the growing figures reflected a shift in fund flows. Daily and weekly data reveal moments when fund movements in the two major cryptocurrencies paralleled each other.
You can follow our news on Telegram, Facebook, Twitter & Coinmarketcap Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should conduct their own research.