Ether’s Surge Pushes Toward Historic Peak as ETF Inflows Accelerate

Ethereum’s native token, ether, is once again approaching uncharted territory. Over the weekend, prices rallied to their highest levels since late 2020s, bringing the cryptocurrency within reach of its all-time record set nearly four years ago.

By early Monday, ether was changing hands near $4,300, edging closer to the $4,800 peak from November 2021. The recent upswing marks a sharp reversal from earlier this year, when the asset lagged behind bitcoin for months. Back in April, ether dipped below $1,500, and as recently as late June it was trading under $2,200—meaning prices have nearly doubled in just a few weeks.

Spot Ether ETFs Draw Billions in Fresh Capital

Fueling much of this rally is the unprecedented demand for U.S.-listed spot ether ETFs. Since January, these funds have absorbed $7.1 billion in net inflows, with a staggering $5.3 billion arriving over the past month alone.

The heavyweight in the category, iShares Ethereum Trust (ETHA), has seen its assets balloon nearly sevenfold—from under $2 billion in mid-April to almost $13 billion today. Other entrants, including the Fidelity Ethereum Fund (FETH), have also gathered significant investor interest this year.

One outlier has been the Grayscale Ethereum Trust ETF (ETHE), which continues to bleed assets—posting $675 million in outflows year-to-date, including $23 million over the last month. Its steep 2.5% expense ratio, roughly ten times higher than rivals like ETHA and FETH, remains a major sticking point for investors.

Collectively, U.S.-listed spot ether ETFs now oversee more than $23 billion in assets—still well below the $150 billion+ held by spot bitcoin ETFs, but growing rapidly.

Closing the Gap With Bitcoin

Ether’s performance this year has finally caught up to its larger counterpart. Both are now up 27% year-to-date, a sharp turnaround from early August when ether had barely gained 2% versus bitcoin’s 20% advance.

Part of this rebound is a classic “catch-up trade,” but renewed confidence in Ethereum’s broader ecosystem is also at play. The IPO of Circle Internet Group, issuer of USDC—the world’s second-largest stablecoin—has bolstered sentiment. Since most stablecoins, including USDC, are built on Ethereum, the event has been viewed as a validation of its network’s utility.

Adding to the momentum is the rise of “Ethereum treasury” corporations such as Bitmine Immersion Technologies and Sharplink Gaming. Similar to MicroStrategy’s bitcoin-heavy balance sheet, these companies are stockpiling ether as a core reserve asset.

Ethereum’s Competitive Edge Remains in Focus

Advocates argue that Ethereum is reclaiming the innovative leadership it held during the last crypto bull run, driven by the explosion of NFTs and decentralized finance. While rival smart contract platforms like Solana have drawn attention, Ethereum’s pace of development hasn’t slowed.

With institutional money flowing into spot ETFs, corporate treasuries adding ether, and the network maintaining its dominance in stablecoin issuance, bulls believe this rally could be the beginning of a longer-term trend—one that might finally push ether beyond its historic peak.