Ethereum Spot ETFs See 7th Week of Inflows, Price Rebounds 13.64%

Institutional demand for Ethereum has shown remarkable strength, as evidenced by the continuous inflows into spot exchange-traded funds (ETFs) for the seventh consecutive week. This trend highlights a growing interest among institutional investors in gaining exposure to Ethereum without directly owning the cryptocurrency. Spot ETFs provide a convenient investment vehicle that trades on traditional platforms, making them an attractive option for investors accustomed to traditional financial markets.

The US Securities and Exchange Commission (SEC) approved spot ETFs for Ethereum in mid-2024, following the approval of Bitcoin spot ETFs earlier in the year. This regulatory green light has facilitated a steady inflow of capital into Ethereum spot ETFs, with a notable rebound in Ethereum's price from $2,200 to $2,500. According to Glassnode, the analytics firm, Ethereum spot ETFs recorded 106,000 ETH in net inflows last week, marking the seventh straight week of positive flows. This influx of capital indicates a strong institutional appetite for Ethereum, driven by its price recovery and the convenience of ETF investments.

Bitcoin, the leading cryptocurrency, has also experienced a surge in demand, with a net inflow of around 15,000 BTC into US spot ETFs during the latest week. This translates to approximately $1.6 billion in USD terms, significantly higher than the $258.6 million inflows for Ethereum. While both cryptocurrencies have seen increased demand, the scale of investment in Bitcoin remains larger. The trend for Bitcoin spot ETFs shows an acceleration of demand in June, although it is uncertain whether this momentum will continue into July.

Despite Ethereum's recent price pullback to $2,400, the overall trend suggests a sideways movement in the last few days. The continuous inflows into Ethereum spot ETFs indicate that institutional investors are confident in the cryptocurrency's long-term prospects, despite short-term price fluctuations. This sustained interest underscores the growing acceptance of Ethereum as a viable investment option within traditional financial markets.