Ethereum ETFs Smash Records: $5B Floodgate Opens as Institutional Money Pours In

Wall Street's latest crypto crush just hit a staggering milestone—Ethereum ETF inflows blew past $5 billion faster than a DeFi exploit drains a liquidity pool.

The institutional embrace

Traditional finance is finally playing catch-up, throwing nine-figure checks at ETH products while retail traders still fight over gas fees. BlackRock's crypto desk reportedly processed more ETH derivatives last quarter than all of Coinbase's spot markets.

Why this matters

That $5B figure isn't just a number—it's Wall Street's tacit admission that smart contract platforms now rival blue-chip stocks as core portfolio holdings. Even SEC chair Gary Gensler's scowling face can't stop the tide.

The cynical take

Of course, the same banks now shilling ETH ETFs spent 2022 calling it 'uncorrelated assets'—right before the entire market moved in lockstep with the S&P 500. Some decentralization.

Nearly one billion in five days

With $908 million in new capital, ETH products last week surpassed $5 billion in net inflows for the first time. $675 million went into BlackRock’s ETHA, while the remaining $233 million was collected by other issuers. The $181 million per day figure is well above the average of $23 million since launch, indicating a growing appetite for Ethereum among US investors.

In total, Ethereum ETFs now stand at $5.6 billion in net inflows, with another strong start to the week. Thanks to price gains and converted funds from the Grayscale Trust, the products manage over $14 billion in assets. However, these figures pale in comparison to Bitcoin. US ETFs for the "digital gold" pulled in over $1 billion in new money on two individual days last week. In total, $52.6 billion has flowed into the Bitcoin funds, which now manage $148 billion – soon to surpass US gold ETFs.

Altcoin ETFs at the starting line

Given the rising risk appetite among US investors, the upcoming launch of various altcoin ETFs will be interesting to watch. Two weeks ago, the SEC approved an exotic solana ETF and paved the way for funds on XRP and Cardano. The official launch was temporarily postponed by the agency, as it first aims to develop a more streamlined framework for approving crypto products.

BlackRock is holding back for now when it comes to the alternative crypto market. Fidelity, the number two issuer, is also focusing solely on a Solana ETF. The hesitation of these industry giants may slow inflows into altcoin products. Nonetheless, future ETF approvals represent an important milestone in the institutionalization of the crypto market.