Ethereum ETFs Exceed $5 Billion in Net Inflows, BlackRock’s ETHA Posts Sixth Highest Weekly Inflow

Ethereum ETFs Surpass $5 Billion in Net Inflows

Spot Ethereum exchange-traded funds (ETFs) have surpassed $5 billion in net inflows as of July 11, marking a significant milestone for the sector. This achievement comes just 12 trading days after the $4 billion threshold was crossed, according to data from Farside Investors. The pace of accumulation has accelerated notably, with the previous $1 billion increase requiring 15 trading sessions. This rapid growth underscores a rising institutional interest in Ethereum-based investment products.

BlackRock’s ETHA Leads Weekly Inflows

A key contributor to this surge has been BlackRock’s iShares Ethereum Trust (ETHA), which recorded $675 million in net subscriptions during the week ending July 11. Bloomberg senior ETF analyst Eric Balchunas highlighted that ETHA’s inflow ranked sixth among all U.S. ETFs in that period, a remarkable feat for a cryptocurrency-focused fund. Balchunas described this performance as a “significant moment,” noting that ETHA is now competing alongside major traditional equity and bond ETFs, despite the continued dominance of larger Bitcoin products.

The momentum in Ethereum ETFs is part of a broader trend of institutional adoption of cryptocurrency ETFs. Bitcoin ETFs, for instance, registered $1 billion in inflows on two consecutive days, reflecting strong demand across the digital asset space. BlackRock’s Bitcoin ETF (IBIT) alone absorbed $1.7 billion over the same week, maintaining its market leadership.

Rapid Growth and Market Dynamics

Ethereum ETFs, which launched on July 23, 2024, reached $4 billion in cumulative flows by June 23 after 231 trading days. The initial $3 billion took 216 sessions to accumulate, but the jump from $4 billion to $5 billion occurred in just over two weeks. This period included five consecutive days with daily inflows exceeding $200 million. ETHA was particularly prominent, attracting $300.9 million on July 10, $158.6 million on July 9, and $137.1 million on July 11. Other issuers such as Fidelity (FETH) and Bitwise (ETHW) also reported steady inflows, while Grayscale’s legacy ETHE product experienced redemptions.

Despite the overall positive trend, recent data points to some market volatility. A U.S. Ethereum Spot ETF recorded a net outflow of $11.3 million, indicating that while institutional appetite remains robust, investor sentiment can fluctuate. Nonetheless, spot Ethereum ETFs now represent over 10% of the total inflows seen by U.S.-traded Bitcoin ETFs, highlighting their growing importance in the market.

The surge in Ethereum ETF inflows is expected to prompt further competition, with additional asset managers likely to launch similar products to capture market share. As institutional adoption of cryptocurrency ETFs continues to accelerate, both Ethereum and Bitcoin products are set to play an increasingly prominent role in the evolving investment landscape.