Ethereum ETF Demand Explodes—So Why Isn’t the Price Budging?

Money’s flooding into Ethereum ETFs like there’s no tomorrow—yet ETH’s price acts like it’s stuck in 2023. What gives?

The Institutional Stampede

Wall Street’s throwing cash at crypto’s silver medalist, but the market’s response? A shrug. Classic finance—always a step behind the real action.

Liquidity vs. Momentum

All that fresh capital should be rocket fuel. Instead, we’re watching ETH trade sideways while traders chase the next shiny meme coin. The irony’s thicker than a banker’s bonus.

The Cynic’s Take

Maybe the ‘smart money’ isn’t so smart after all. Or maybe—just maybe—the market’s waiting to see if these ETF managers can actually spell ‘Web3’ before committing.

TLDR

• Ethereum ETF inflows have increased for nine consecutive trading sessions.
• BlackRock’s ETHA and Fidelity’s FETH are leading the recent surge in inflows.
• ETHA has crossed $4.5 billion in total inflows since its inception.
• Despite rising inflows, Ethereum ETFs contribute only about 1.5% to spot trading volume.
• Glassnode reports that the average cost basis for ETHA is $3,300 and for FETH is $3,500.

Ethereum ETF inflows have increased over nine straight sessions, yet they remain too small to affect Ethereum’s spot price. Although demand continues rising, Ethereum ETF volumes contribute marginally to total spot market activity. Despite strong capital entries, ethereum price remains below key levels, indicating minimal price movement influence from these products.

Ethereum ETF Inflows Continue to Grow

ETH ETF inflows recorded consistent gains, led by BlackRock’s ETHA and Fidelity’s FETH with strong capital movement. On Thursday, total net inflows reached $91.9 million, of which ETHA contributed $50.4 million and FETH added $38.3 million. BlackRock’s ETHA has now accumulated over $4.5 billion in total inflows since launch.

Institutional interest is building, yet ethereum ETF inflows still make up only a small portion of overall spot trading volumes. These inflows have grown compared to early launch days, but their market share remains limited in 2025. Glassnode confirms that trading volume share from Ethereum ETFs has returned to around 1.5%.

Glassnode analysis states that this current share is far from sufficient to cause any significant shift in spot ETH price. The blockchain analytics firm noted a rise to 2.5% in late 2024, but volumes have since receded. Ethereum ETFs show stable inflows, but their broader impact remains low compared to overall market liquidity.

ETHA and FETH Holders Remain Below Break-even

Ethereum ETF cost-basis data reveals ETHA at $3,300 and FETH at $3,500, both above current ETH trading levels. With Ethereum now priced NEAR $2,616, the average position in ETHA and FETH stands around 21% below break-even. This gap may explain recent selling trends as prices dip below cost levels.

Negative ETF flows for Bitcoin.

Positive ETF flows for Ethereum.

MONEY IS ROTATING INTO $ETH! 🔥 pic.twitter.com/HZwSjuS5DY

— crypto Rover (@rovercrc) May 30, 2025

Outflows have historically accelerated when Ethereum trades under these cost-basis thresholds, especially during major price drops. This occurred notably in August 2024 and again in early 2025, aligning with broader market weakness. Such patterns reflect reactive moves tied to underwater holdings in Ethereum ETFs.

Although inflows are rising, the underwater status of ETF holders creates resistance near break-even zones. Traders rotate capital quickly, limiting long-term price effects from Ethereum ETF participation. This ongoing cycle keeps overall market sentiment cautious and contributes little to upward price movement.

Bitcoin ETF Flows Shift as Ethereum Sees Rotation

While Ethereum ETF inflows grew, Bitcoin ETFs recorded net outflows on Thursday, suggesting shifting capital flows between major crypto assets. According to some market watchers, the recent decline in Bitcoin ETF inflows may indicate a rotation into Ethereum. However, the ETH ETF share in spot volume remains too small for price traction.

The Ethereum ETF inflows have not offset Bitcoin’s earlier dominance in institutional capital flow trends over the past month. Glassnode continues to emphasize that volume impact must rise meaningfully to shift spot market price movements. The current pace remains inadequate for broad Ethereum price momentum.