Ethereum Funds See 13,667% Inflow Surge Post-Pectra Upgrade

Investors have shown a significant increase in interest in Ethereum funds following the network's Pectra upgrade. Ethereum investment products saw inflows of $205 million last week, a substantial rise from the $1.5 million recorded the previous week. This surge in investment is attributed to the asset's climb towards $2,700, according to a report from a crypto asset manager.

Overall, digital asset investment products, including spot exchange-traded funds, attracted $785 million in investments. This brought the year-to-date inflows to over $7.4 billion, marking the highest point for 2025. Ethereum was highlighted as the standout performer, while Solana-based funds experienced outflows of $1 million.

Despite a 4.3% decrease in Ethereum's price to $2,400 over the past day, the asset's price has increased by 50% over the past thirty days, significantly higher than the $1,850 mark at the beginning of the month. This price volatility has not deterred investors, who continue to show interest in gaining exposure to Ethereum.

The Pectra upgrade, activated less than two weeks ago, introduced several changes to the Ethereum network. These include improved scaling solutions to keep transactions affordable and an increase in the amount of Ethereum that can be staked per validator, enhancing the network's overall efficiency. The upgrade has made it easier for institutions to integrate staking rewards into their products, according to Sui Chung, CEO of CF Benchmarks.

Bitcoin products also attracted significant investment, pulling in $557 million last week. This brought the year-to-date inflows for Bitcoin funds to $7.2 billion, accounting for the majority of all flows. Digital asset investment products have now recorded their fifth straight week of inflows, pushing year-to-date inflows to $7.5 billion.

Spot Ethereum ETFs have lagged behind Bitcoin counterparts in the U.S., pulling in $2.5 billion compared to Bitcoin's $42 billion since their debuts in 2024. This disparity is partly due to the lack of staking rewards for Ethereum ETF investors. Staking allows users to earn rewards by pledging assets to a network to help process transactions, a process that became core to Ethereum with its shift to a proof-of-stake consensus model in 2022.

The Pectra upgrade brings a level of operational predictability to Ethereum staking, making it easier for institutions to integrate staking rewards into their products. This upgrade is not just technical; it provides the infrastructure needed for fund managers to offer ETH ETFs that include staking, with clear redemption timelines, reliable liquidity, and flexible control over assets.