Ethereum News Today: Ethereum ETFs See Record $726 Million Inflows as Price Surges 23%

Ethereum ETFs experienced an unprecedented surge in investments, with a record-breaking $726 million in net inflows on Wednesday. This marked the highest single-day inflow since the inception of these funds, which have been trading for nearly a year. The influx of capital coincided with Ethereum's price reaching its highest level since January, reflecting a renewed interest and optimism in the cryptocurrency market.

The nine Ethereum ETFs collectively netted $2.3 billion over a nine-day streak of inflows, starting from July 3. This sustained demand from both institutional and retail investors underscores the growing confidence in Ethereum as a viable investment option. Ethereum's price, which was trading just below the $3,500 mark on Thursday, saw a 23% spike over the last seven days, further bolstering investor sentiment.

The price gains have been driven in part by Ethereum treasury firms adding to their holdings. On Thursday, BitMine Immersion surpassed $1 billion in Ethereum after adding $500 million in ETH to its holdings. The firm aims to control 5% of all Ethereum held or staked, a strategy that was unveiled earlier this month. Additionally, SharpLink Gaming, a gambling marketing firm, bought $225 million worth of Ethereum following a $425 million raise. Joseph Lubin, CEO of Consensys and Ethereum co-founder, joined SharpLink’s board of directors, further solidifying the company's commitment to Ethereum.

The surge in Ethereum ETFs has also been fueled by renewed optimism about the Ethereum network's usefulness, particularly as the main protocol for stablecoin transactions. The expected passage of the GENIUS Act in the House is likely to boost the stablecoin market, which in turn could benefit Ethereum. Analysts have noted that Ethereum stands to gain more from the passage of the GENIUS Act stablecoin bill than Bitcoin. Furthermore, spot Ethereum ETFs may soon be allowed to allocate staking rewards, which could boost their appeal for mainstream investors. On Thursday, Nasdaq filed for a 19b-4 rule change that would allow BlackRock's iShares Ethereum Trust (ETHA), the largest of these funds by assets, to include these features. The U.S. Securities and Commission is due to weigh in on similar proposals from issuers in October.

Spot Ethereum funds now manage nearly $14 billion in assets, reflecting a significant increase in interest compared to the tepid response seen earlier. The recent spike in inflows has put these products on nearly even terms with Bitcoin funds, which generated $799 million in assets on Thursday. This surge in investments highlights the growing acceptance and adoption of Ethereum as a mainstream investment option, driven by both institutional and retail demand.