Ethereum News Today: Ethereum ETFs Attract Record $2.18B Inflow, Surpassing Previous High by 140% as Bitcoin ETFs Face $131.4M Outflows

Ethereum-based exchange-traded funds (ETFs) experienced a record influx of $2.18 billion in net inflows during the week ending July 19, 2025, according to SoSoValue data. This figure more than doubles the previous weekly high of $907.99 million, signaling a significant shift in institutional and retail investor behavior toward the second-largest cryptocurrency by market capitalization. The surge in capital inflows has outpaced Bitcoin ETF activity, which saw $131.4 million in outflows during the same period, while Ethereum ETFs absorbed $296.6 million in net inflows on a single day.

This marks twelve consecutive days of inflows into Ethereum ETFs, indicating sustained institutional confidence in the asset. Early Ethereum holders, defined as first-time buyers, have resumed accumulation efforts after a multi-month decline, with their holdings rising sharply. According to CryptoRank data, this trend suggests a renewed belief in Ethereum’s long-term value proposition, particularly as technical indicators show the price testing key resistance levels on weekly charts. The formation of a descending broadening wedge pattern—a historically bullish structure—has added to optimism, with analysts noting parallels to market conditions observed in 2019–2020.

Regulatory developments further bolster the positive momentum. Five major fund issuers submitted amendment filings to the U.S. Securities and Exchange Commission (SEC) to enable in-kind creation and redemption mechanisms for Ethereum ETFs. These amendments, if approved, would allow investors to swap physical Ethereum for ETF shares without triggering taxable events—a feature common in traditional ETFs but absent in current cash-based models. Proponents argue that such changes could enhance liquidity and reduce costs, making Ethereum ETFs more competitive with Bitcoin products while aligning with conventional market practices.

The potential approval of in-kind mechanisms reflects a broader regulatory shift, with the SEC seemingly open to streamlining processes for cryptocurrency-related funds. This aligns with Ethereum’s growing role in infrastructure-driven use cases, including smart contracts and decentralized finance (DeFi). Meanwhile, Ethereum’s dominance in the stablecoin market remains robust, holding a $125.9 billion share compared to TRON’s $81.1 billion, as per Messari data. This entrenched position underscores Ethereum’s function as a foundational layer for blockchain innovation, even as competition from Layer-1 networks intensifies.

The $2.18 billion inflow represents a pivotal moment for Ethereum’s institutional adoption, demonstrating its capacity to attract capital on par with traditional asset classes. Analysts highlight that the convergence of regulatory clarity, technical strength, and corporate interest is reshaping perceptions of Ethereum from speculative asset to strategic infrastructure. If in-kind mechanisms gain approval and staking features are integrated into ETF structures, demand could accelerate further, reinforcing Ethereum’s role in diversified institutional portfolios. For now, the data highlights a clear trajectory: Ethereum is increasingly embedded in the global investment landscape, with its ETF ecosystem maturing in tandem with regulatory frameworks.