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Ethereum-based exchange-traded funds (ETFs) have generated a record $602 million in net inflows on July 17, marking the first time
ETFs surpassed ETFs in single-day inflows. This shift reflects growing institutional interest in Ethereum, driven by anticipation of potential staking capabilities and broader adoption of decentralized finance (DeFi) innovations. During the same period, Bitcoin ETFs reported no net inflows, while Ethereum ETFs accounted for over $7.8 billion in inflows for July 2025, dwarfing Bitcoin ETFs’ estimated $1.2 billion. The surge has elevated Ether to a six-month high of $3,676, with Ethereum-linked equities such as Technologies rising 14% amid heightened investor optimism [1].The momentum is attributed to evolving market dynamics, including regulatory discussions around staking integration. While U.S.-listed Ethereum ETFs currently do not offer staking yields, firms like
and NYSE have proposed frameworks allowing ETFs to stake holdings, pending regulatory approval. In Europe and Canada, staking-ready Ethereum ETFs already enable investors to earn passive income, setting a precedent for U.S. markets [2]. Analysts at QCP Capital emphasize that Ethereum’s narrative is shifting toward potential ETH spot ETF approvals, which could further accelerate institutional allocation. James Butterfill of CoinShare noted that Ethereum’s proportionally stronger appeal among professional investors highlights a strategic reallocation away from Bitcoin [3].Performance metrics underscore the divergence between the two asset classes. The iShares Ethereum Trust (ETHA) now manages $3.7 billion in assets, up from $2.8 billion in early June, while
leads in daily trading volume and fundraising compared to competitors like Fidelity and Grayscale. On July 17, Ethereum ETFs captured a staggering $602 million in inflows, contrasting with Bitcoin ETFs’ neutral net flows. This trend aligns with Julio Moreno of CryptoQuant’s observation that U.S. Ethereum ETF purchases have outperformed Bitcoin’s, signaling strong market conviction [4].The implications for investors are significant. Ethereum’s expanding role in DeFi, coupled with regulatory advancements and potential staking opportunities, positions it as more than a speculative asset. Analysts suggest that if U.S. regulators approve yield-generating ETFs, Ethereum could see sustained inflows. However, current U.S. ETFs lack staking features, prompting some investors to weigh the benefits of ETFs against direct holdings, which offer greater control and staking flexibility.
The data highlights a broader structural shift in institutional crypto portfolios. As Ethereum ETFs attract $7.8 billion in July inflows alone, the asset class is redefining its value proposition. With regulatory clarity on the horizon and a maturing ecosystem, Ethereum ETFs are emerging as a cornerstone for investors seeking structured exposure to the blockchain’s next phase.
Source:
[1] [Ethereum ETFs Pull $602M in a Day: Leave Bitcoin in the Dust](https://thebitjournal.com/ethereum-etf-surge-shocks-market-bitcoin-slips/)
[2] [Ethereum ETFs Pull $602M in a Day: Leave Bitcoin in the Dust](https://thebitjournal.com/ethereum-etf-surge-shocks-market-bitcoin-slips/)
[3] [Ethereum ETFs Pull $602M in a Day: Leave Bitcoin in the Dust](https://thebitjournal.com/ethereum-etf-surge-shocks-market-bitcoin-slips/)
[4] [Ethereum ETFs Pull $602M in a Day: Leave Bitcoin in the Dust](https://thebitjournal.com/ethereum-etf-surge-shocks-market-bitcoin-slips/)

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