Ethereum ETFs Surge $500M in Week Ahead of Pectra Upgrade

Ethereum ETFs have witnessed a significant influx of $500 million in a single week, representing 16% of all-time net inflows, which now total $3.17 billion. This surge in investment comes as the Ethereum network prepares for the upcoming Pectra upgrade.

On February 4th, Ethereum ETFs experienced the third-highest single-day inflow of $307 million, indicating growing investor interest in regulated Ethereum investment products. BlackRock's iShares Ethereum Trust (ETHA) leads the market with $3.75 billion in assets under management, followed by Grayscale's Ethereum Trust (ETHE) with $3.67 billion, and Fidelity's Ethereum Fund (FETH) with $1.34 billion.

The recent inflows coincided with a price recovery for Ethereum, which rebounded from $2,150 on February 3rd to $2,920 by February 4th, marking a 36% increase. As of February 7th, Ethereum trades at $2,720, down 27.5% from its 2025 peak of $3,750 and approximately 45% below its all-time high of $4,890.

Ethereum's Pectra upgrade is scheduled for the Holesky testnet on February 24th and the Sepolia testnet on March 5th, with a mainnet launch expected in April 2025. The upgrade will introduce eight improvements focusing on wallet and validator security, following the successful Dencun upgrade of March 2024.

The Pectra upgrade includes two key proposals, EIP-7702 and EIP-7251, aimed at enhancing security and efficiency for network components. Developers have already planned the next network upgrade, called Fusaka, for Q4 2025, demonstrating Ethereum's commitment to regular technical improvements.

The combination of strong ETF inflows and upcoming technical upgrades comes as Ethereum faces competition in the smart contract platform space. Despite recent struggles and price volatility, institutional investors continue to show interest in the asset, as indicated by the recovery in ETF inflows.