Ethereum ETFs May See $10 Billion Inflows by 2025 as Institutional Interest Surges

Ethereum ETFs are poised for significant inflows as institutional interest in the cryptocurrency continues to grow. Bitwise Chief Investment Officer Matt Hougan forecasts that up to $10 billion could flow into Ethereum ETFs by the end of 2025. This projection follows a strong June, where Ethereum ETFs gathered $1.17 billion in inflows, indicating robust early demand.

Several factors are driving this institutional interest. Ethereum is increasingly being used as a platform for tokenizing traditional assets. Major corporations, including PayPal, Visa, Fidelity, JPMorgan, and Nike, are either building on Ethereum or integrating its technology into their operations. This trend is further supported by Robinhood's recent announcement to issue up to 200 tokenized U.S. stocks and ETFs on Ethereum’s Arbitrum layer-2 network, positioning Ethereum as a key infrastructure for real-world financial assets.

Technical improvements on the Ethereum network are also contributing to the growing confidence in the cryptocurrency. The Pectra upgrade, implemented on May 7, enhanced validator operations and user functionality. This technical progress coincides with accelerating ETF inflows. For instance, BlackRock’s iShares Ethereum Trust (ETHA) attracted $54.8 million on July 1 alone, maintaining inflows nearly daily since its launch, totaling $5.5 billion to date.

Publicly traded firms are adjusting their strategies to capitalize on Ethereum's potential. Bit Digital announced a $162.9 million share issuance specifically to acquire Ethereum for its treasury, shifting its focus from Bitcoin mining toward Ethereum-centered operations. This move underscores the growing institutional recognition of Ethereum's capacity to digitize conventional markets, which is expected to narrow Bitcoin’s lead in institutional portfolios.

Hougan’s outlook suggests that Ethereum's practical utility, rather than merely speculative demand, forms the core institutional case as ETF volumes expand. The combination of stablecoins and stocks moving over Ethereum provides an easy-to-grasp narrative for traditional investors, further accelerating inflows into Ethereum ETFs in the second half of 2025.