Ethereum News Today: U.S. Ethereum ETFs Hit $16.6B AUM After One Year with Strong Institutional Inflows

Ethereum-based spot ETFs in the U.S. have reached a key milestone—turning one year since their launch, with a combined $16.6 billion in assets under management (AUM). Approved by the U.S. Securities and Exchange Commission (SEC) in May 2024, these funds allow investors to gain exposure to Ether (ETH) without directly holding the cryptocurrency. The growth trajectory, though slower in early months, accelerated in mid-2025, marked by a record $726 million in daily inflows and an 11-day streak of positive flows totaling $2.8 billion [1].

The initial days of Ethereum ETFs saw a modest start compared to Bitcoin ETFs. On July 23, 2024, the nine approved Ether ETFs recorded $107 million in net inflows on launch day, significantly lower than Bitcoin ETFs’ $655 million. Over 79 trading days, Ethereum ETFs faced over $4 billion in outflows, while Bitcoin ETFs saw net inflows of $29 billion. However, Ethereum ETFs gained traction in early August 2024, posting their first weekly positive flows of $105 million and gradually building investor confidence [1].

Institutional investors have been the primary drivers of growth, with approximately 92% of ETH ETF assets tracked in SEC Form 13F filings belonging to institutional holders who also hold Bitcoin ETFs. These include hedge funds, pension funds, and wealth managers. Retail investors also contributed, particularly during periods of strong inflows. For example, on July 11, 2025, Ether ETFs received $205 million in daily inflows, with BlackRock’s ETHA accounting for $137 million of that total [1].

The regulatory environment played a crucial role in enabling this growth. The SEC’s approval of spot Ethereum ETFs marked a shift from its prior reluctance to regulate crypto assets. Providers removed staking features from their proposals to address regulatory concerns, signaling a more cautious approach than previously seen. The move also indicated a potential shift toward clearer crypto investment rules in the U.S. [1].

Spot ETFs differ from futures-based alternatives in both structure and cost. Spot Ether ETFs own ETH directly, offering more accurate price tracking and lower fees, while futures-based ETFs rely on derivative contracts, which come with higher fees and complex tax reporting requirements. Spot ETFs are structured as pass-through grantor trusts, requiring investors to handle tax calculations for crypto gains separately from ETF transactions [1].

In comparison to other regions, U.S. spot ETFs provide a more streamlined approach for domestic investors. European models, such as UCITS-compliant funds, restrict synthetic or futures-based ETFs more strictly. Additionally, non-U.S. jurisdictions often impose higher withholding taxes and require more extensive disclosures, making U.S. ETFs more accessible but potentially less tax-efficient internationally [1].

The $16.6 billion in AUM represents a broader shift in how institutions view Ethereum. No longer seen primarily as a speculative asset, ETH is now regarded as core digital infrastructure, supported by its staking capabilities, decentralized finance (DeFi) ecosystem, and growing Layer-2 network. Over a third of ETH is now staked, with liquid staking derivatives like stETH gaining traction. ETF inflows have also contributed to tighter supply on exchanges, pushing prices higher. In July 2025, weekly inflows surpassed $2 billion, coinciding with a 40% price increase [1].

As Ethereum ETFs mature, they are being integrated into wealth management strategies, retirement accounts, and broader institutional portfolios. With regulatory clarity improving and staking-enabled ETFs on the horizon, Ethereum is transitioning from a speculative digital asset to a foundational financial product. This evolution highlights its growing relevance in the global economy and its role in supporting decentralized finance, programmable value, and Web3 infrastructure [1].

Source: [1] US Ether ETFs Turn One: What $16.6B in Assets and Bullish Inflows Signal for the Future (https://coinmarketcap.com/community/articles/688f5d24ed604315633ac920/)