Ethereum News Today: BlackRock's ETHA Surpasses $10B in 12 Months, Captures 80% Ethereum ETF Inflows as DeFi Drives Growth

BlackRock’s Ethereum ETF (ETHA) has surpassed $10 billion in net assets, marking a pivotal milestone in the evolution of crypto-backed exchange-traded funds. The fund, launched on June 21, 2025, achieved this feat in under 12 months, with inflows accelerating to $1.76 billion in the past week alone, capturing 80% of total Ethereum ETF inflows [1]. This rapid growth positions ETHA as the third-fastest ETF in history to reach $10 billion, trailing only Bitcoin-focused and Nasdaq-100-index funds [3]. The surge reflects a broader shift in investor sentiment, as Ethereum’s spot trading volume exceeded Bitcoin’s for the first time in over a year, reaching $25.7 billion compared to Bitcoin’s $24.4 billion [1].

The capital reallocation underscores Ethereum’s growing appeal, driven by its dominance in decentralized finance (DeFi) and tokenization [6]. BlackRock’s ETHA now commands a 58.6% share of total Ethereum ETF assets [1], outpacing competitors while Bitcoin ETFs faced net outflows of $85.96 million on July 23. This trend aligns with Ethereum’s technological advancements, including post-merge upgrades, and regulatory clarity that enhances its utility as a strategic asset [1].

Regulatory developments further bolster ETHA’s momentum. Nasdaq recently filed with the SEC to add staking capabilities to the fund, a move that could enhance returns for investors by enabling yield generation from staked Ethereum [3]. This innovation mirrors broader trends in DeFi, where staking and tokenized assets are gaining traction. Meanwhile, the SEC’s decision to pause Bitwise’s Ethereum ETF application [7] has not dampened enthusiasm for ETHA, which now accounts for 2.3% of Ethereum’s total market capitalization [1].

The ETF’s performance highlights its role in reshaping crypto investment dynamics. Unlike Bitcoin ETFs, which experienced three consecutive days of net outflows in late July, ETHA has recorded 14 straight days of net inflows [1]. This divergence suggests a strategic reallocation of capital from Bitcoin to Ethereum-based products, supported by Ethereum’s price rally to $3,712.31—a 3.22% increase from its previous week’s level [1].

Analysts note that Ethereum’s gains depend on sustained demand and DeFi adoption. Mint Ventures cautions that Bitcoin’s bull market may face sustainability challenges as capital flows into Ethereum ETFs, though this remains contingent on macroeconomic stability and regulatory outcomes [5]. Bloomberg’s Eric Balchunas labeled ETHA’s growth a “God candle,” emphasizing its unprecedented speed in asset accumulation [3].

The ETF’s success also reflects broader institutional interest in Ethereum’s ecosystem. U.S. Ethereum ETFs attracted $296 million in inflows on July 22, the highest single-day inflow after $534 million on July 12 [1]. This trend is supported by macroeconomic factors, including institutional buying and a resurgence in staking yields, with firms like SharpLink Gaming reporting significant Ethereum holdings and staking earnings [4].

As the crypto market matures, the competition between Bitcoin and Ethereum ETFs will likely intensify. While Bitcoin ETFs remain a cornerstone of institutional portfolios, Ethereum’s regulatory clarity and technological advancements position it as a compelling alternative for diversification [1]. The SEC’s scrutiny of new applications and the performance of existing ETFs will shape the next phase of adoption, but for now, ETHA stands as a testament to Ethereum’s growing role in the institutional crypto ecosystem [1].

Source: [1] [Bitcoin News Today: U.S. Spot Bitcoin ETFs Record $67.94M Outflows](https://www.ainvest.com/news/bitcoin-news-today-spot-bitcoin-etfs-record-67-94m-outflows-day-bitb-arkb-lead-profit-macro-pressures-drive-exits-2507/); [3] [Ethereum ETFs Are Exploding! $296 Million Inflows as Bitcoin Bleeds $131 Million in One Day](https://m.economictimes.com/news/international/us/ethereum-etfs-are-exploding-296-million-inflows-as-bitcoin-bleeds-131-million-in-just-one-day/articleshow/122837955.cms); [4] [Ethereum Has Drawn Billions in ETF Inflows and DeFi Activity This Quarter](https://www.barchart.com/story/news/33577110/missed-out-on-ethereum-and-xrp-over-25-000-early-movers-big-on-this-next-gen-ripple); [5] [Mint Ventures: Is the BTC Bull Market Coming to an End?](https://news.futunn.com/en/post/59515722/mint-ventures-is-the-btc-bull-market-coming-to-an); [6] [Ethereum Is Leading the Market. U.S. Spot ETH ETFs Pulled in $534 Million in Single-Day Inflows](https://www.theblock.co/post/364014/the-daily-goldman-bny-tokenization-push-ethereums-demand-shock-50-trillion-crypto-forecast-and-more); [7] [Crypto Market Update: SEC Pauses Bitwise ETF](https://investingnews.com/cryptocurrency-market-recap/).