Ethereum ETFs Surge 25% in Two Weeks to $5 Billion

Spot Ethereum exchange-traded funds (ETFs) surpassed $5 billion in net inflows on July 11, just 12 trading days after crossing the $4 billion mark. This milestone reflects a faster pace than the previous interval, when the products required 231 trading days to reach $4 billion. iShares Ethereum Trust (ETHA) contributed a large portion of the most recent inflows.

According to data from Farside Investors, ETHA recorded $675 million in weekly net subscriptions, placing it sixth across all US ETFs for the period ending July 11. This significant moment was noted by Eric Balchunas, a senior ETF analyst, who framed ETHA’s weekly haul as a notable achievement, stating that the vehicle is “hanging with the big dogs for the first time.” The fund closed the week ahead of traditional equity and bond vehicles despite operating in the shadow of larger Bitcoin products. BlackRock’s Bitcoin ETF, IBIT, absorbed $1.7 billion over the same span.

Ethereum ETFs launched on July 23, 2024, and crossed $4 billion in cumulative flows on June 23. By contrast, the jump from $4 billion to $5 billion occurred in just over two weeks of trading, including five consecutive days with total inflows exceeding $200 million. Aggregate daily data from July show that ETHA alone drew $300.9 million on July 10, followed by $158.6 million on July 9 and $137.1 million on July 11.

Other issuers such as Fidelity (FETH) and Bitwise (ETHW) posted consistent additions, while Grayscale’s legacy ETHE product saw redemptions. Due to the recent additions, spot Ethereum ETFs now represent over 10% of the total inflows of Bitcoin ETFs traded in the US.

This surge in inflows for Ethereum ETFs indicates a growing interest and confidence in the Ethereum ecosystem among investors. The rapid pace at which these funds have accumulated assets suggests a strong demand for exposure to Ethereum, potentially driven by its utility in decentralized finance (DeFi) applications and its role as a platform for smart contracts. The performance of ETHA, in particular, highlights the competitive landscape within the ETF market, where Ethereum products are increasingly gaining traction alongside more established Bitcoin offerings.