Ethereum ETFs hit $4 billion in inflows in 11 months

Spot Ethereum (ETH) exchange-traded funds (ETFs) listed in the US achieved a significant milestone on June 23, reaching $4 billion in cumulative net inflows just eleven months after their market debut. This rapid growth highlights the increasing interest and investment in Ethereum-based financial products.

The ETFs, which launched on July 23, 2024, took 216 US trading sessions to accumulate their first $3 billion by May 30. Following this, the next $1 billion was added in just 15 trading days, bringing the total lifetime net subscriptions to $4.01 billion by the close of June 23. These 15 sessions, representing 6.5% of the 231-day trading history, accounted for 25% of all cash committed so far, underscoring the accelerated pace of inflows.

BlackRock’s iShares Ethereum Trust (ETHA) was a key driver of this expansion, with $5.31 billion of gross inflows. Fidelity’s FETH contributed $1.65 billion, and Bitwise’s ETHW added $346 million. In contrast, Grayscale’s legacy ETHE trust, which converted to an ETF at launch, recorded $4.28 billion in outflows over the same period. Daily flow data showed that ETHA absorbed more than $160 million on June 11 alone, and the complex booked five separate days above $100 million between May 30 and June 23. Grayscale’s redemptions slowed during the same window, allowing aggregate flows to turn sharply higher.

The fee structure and issuer mix played a crucial role in shaping demand. ETHA and FETH charge 0.25% management fees, matching the sector median and undercutting ETHE’s 2.5% rate. Lower costs, combined with established primary-market relationships, continue to steer inflows toward BlackRock and Fidelity, according to a report that spoke with brokers who allocate on behalf of wealth managers. The report highlighted three factors as drivers for the June surge. The first is a rebound in ETH’s price relative to Bitcoin, coinciding with the Internal Revenue Service’s more explicit guidance on staking income within grantor-trust ETFs. Lastly, larger rebalancing orders from multi-asset allocators, treating ETH as a portfolio extension rather than a standalone speculative bet, contributed to the surge in inflows.

The next quarterly Form 13F deadline in mid-July will reveal whether professional managers joined the late-spring push. Through March 31, those firms accounted for less than 33% of spot Ethereum ETF assets, suggesting room for broader institutional uptake even as retail flows concentrate on low-fee vehicles. This indicates a growing institutional interest in Ethereum ETFs, which could further drive inflows in the coming months.