Ethereum ETFs Attract $1.17 Billion Inflows in June, $10 Billion Expected by Year-End

Ethereum is poised for significant growth in the second half of the year, not only in terms of price but also in institutional adoption. According to Matt Hougan, Chief Investment Officer at Bitwise Asset Management, Ethereum ETFs could attract up to $10 billion in inflows by the end of the year. This prediction comes as Ethereum gains traction as the dominant decentralized finance (DeFi) platform and the backbone for other applications like tokenized stocks, stablecoins, and enterprise adoption.

Hougan's forecast follows a strong period for Ethereum ETFs in June, where the ETF market pulled in $1.17 billion in net inflows. If this trend continues, the second half of the year could mark a major turning point for Ethereum in terms of its institutional journey. Hougan believes that sidelined investors are starting to see ETH differently, not just as a “tech coin,” but as part of the digital financial space. “The combination of stablecoins and stocks moving over Ethereum is an easy-to-grasp narrative for traditional investors,” Hougan explained.

A major driver of Ethereum’s bullish narrative is its increasing role in the tokenization of real-world assets (RWAs), especially stocks. Robinhood, for instance, recently announced plans to issue up to 200 tokenized U.S. stocks and ETFs using Arbitrum, an Ethereum Layer 2 network. This move shows that ETH is becoming more than just a network for smart contracts; it is becoming a bridge between traditional finance and the blockchain world. Other major firms like PayPal, Visa, Stripe, Fidelity, Sony, and Ernst & Young are also looking into Ethereum-based applications.

Ethereum ETFs are gaining ground fast. For example, on July 1, BlackRock’s iShares Ethereum Trust (ETHA) recorded $54.8 million in net inflows. Since its launch, the fund has attracted $5.5 billion and is now one of the top-performing Ethereum investment vehicles. ETHA has seen inflows for 29 of the last 30 trading days, indicating a strong institutional interest in Ethereum. In contrast, Bitcoin ETFs recently broke a 15-day inflow streak after recording $342.25 million in outflows on a single day, suggesting that investor interest might be shifting or at least diversifying.

Beyond ETF inflows, institutional interest in ETH is becoming stronger in other ways. Several publicly traded companies have announced plans to adopt Ethereum as part of their treasury strategy. For example, Bit Digital plans to raise $162.9 million to buy Ethereum and is shifting its strategy from Bitcoin mining to ETH accumulation. SharpLink Gaming has already bought 198,167 ETH after raising $24.4 million via stock sales. BitMine Immersion Technologies is preparing to raise $250 million to kick off its own ETH treasury holdings. These moves show that institutional investors are jumping into the Ethereum market in significant numbers, and Ethereum is becoming a valid store of value, just like Bitcoin.

Soon after Hougan’s bullish prediction, ETH saw an 8% price surge, pushing past its tight consolidation range between $2,300 and $2,500. As of Thursday, Ethereum is now trading at $2,600 with a 6% intra-day price increase. Analysts are watching closely for a breakout from the ascending triangle pattern. Technical indicators show RSI readings above neutral levels, indicating rising buying pressure. However, to maintain a breakout, ETH will need to stay above the resistance and hold support from the 50-day and 100-day Simple Moving Averages (SMAs). A failure to break above could lead to a retracement below the $2,100 price level.