Ethereum ETF Inflows Surge 77% in June, $10 Billion by 2025 Predicted

Bitwise Chief Investment Officer Matt Hougan has predicted that inflows into Ethereum exchange-traded funds (ETFs) could reach $10 billion by the end of 2025. This projection is based on the strong performance of Ethereum ETFs in the first half of the year and the growing momentum from real-world tokenization use cases and regulatory clarity on staking.

Hougan highlighted that Ethereum's role in powering tokenized assets, such as stocks and stablecoins, is crucial in attracting traditional investor interest. He noted that Ethereum ETFs have already seen inflows of over $1.5 billion this year, with a significant $1.17 billion in June alone. Hougan expects that flows into Ethereum ETFs will accelerate significantly in the second half of the year, driven by the combination of stablecoins and stocks moving over Ethereum, which presents an easy-to-grasp narrative for traditional investors.

According to an ETF tracking platform, Ethereum ETFs experienced net inflows in five of the first six months of 2025, demonstrating sustained institutional interest. Although March saw a temporary outflow of $403 million, the market rebounded in the second quarter, fueled by optimism around tokenization and improving regulatory signals.

The $1.17 billion inflow in June was the largest single-month inflow for Ethereum ETFs to date. While Bitcoin ETFs have $49 billion in assets, Ethereum is still in the early stages of the ETF market. However, with assets under management approaching $4.2 billion, Ethereum is increasingly being viewed as a settlement layer for tokenized finance.

Another significant catalyst is the recent ruling by the SEC that crypto staking is not a securities offering. This ruling opens the door for staking-enabled Ethereum ETFs, which would provide passive income through staking yields while tracking ETH’s price. Several issuers, including Ark Invest, Fidelity, and VanEck, are already developing staking-based ETFs pending regulatory approval. Analysts believe these products will accelerate Ethereum ETF inflows, particularly among institutions seeking yield.

Ethereum’s evolving infrastructure is also building investor confidence. The Pectra upgrade, deployed in the second quarter of 2025, introduced more efficient validator structures and better data compression, enhancing scalability. Later this year, the Glamsterdam upgrade is set to improve throughput and gas efficiency, making Ethereum a robust, high-capacity settlement layer as tokenized asset volumes grow. Developers and enterprise partners view these upgrades as crucial to Ethereum’s future, especially with ETF-backed adoption and the increasing mainstream use of staking in regulated finance.

Ethereum’s $4.2 billion in ETF assets is relatively small compared to Bitcoin’s $49 billion, but the growth rate is steep. Inflows into ETH funds in the second quarter were higher than expected, and analysts believe Ethereum could close the gap if staking ETFs and tokenization take off. Bitcoin spot ETFs dominated early inflows with over $4.6 billion in June. However, Ethereum’s position as a programmable base layer offers a different value proposition that could attract new institutional capital.

With Ethereum ETF inflows already bringing in $1.5 billion in the first half of the year and new staking-enabled products on the horizon, Bitwise’s $10 billion projection for the end of 2025 seems more achievable. If the infrastructure holds and staking ETFs launch as expected, Ethereum could be in regulated markets by year-end. For now, all eyes are on the third quarter to see if this next leg of growth materializes.