Ethereum News Today: Ethereum ETFs Outpace Bitcoin in Q3 Inflows as Altcoin Appetite Grows

Ethereum ETFs recorded $15.97 million in net inflows during the week ending October 31, 2025, with Grayscale's Ethereum Mini Trust ETF (ETH) leading the charge by attracting $56.05 million in new capital, according to SoSoValue analytics. This marks a resurgence in institutional activity following market volatility. Grayscale's ETH ETF now holds $1.54 billion in cumulative inflows since its launch, solidifying its dominance in the Ethereum ETF space. Meanwhile, Ethereum's price edged higher, trading at $3,857, as over $500 million in ETH was moved into long-term holdings, signaling accumulation by institutional investors.

The Ethereum ETF rally occurs against a backdrop of broader crypto market optimism, driven by the launch of Solana (SOL) and Litecoin (LTC) ETFs. Grayscale's Solana ETF (GSOL) and Bitwise's BSOL debuted this week, with BSOL drawing $129 million in inflows within its first two days, while GSOL added $4 million on its opening day, per a report from The Crypto Basic. Grayscale's Head of Research, Zach Pandl, forecasts that U.S. Solana spot ETFs could absorb 5% of the token's total supply within one to two years, translating to over $5 billion in inflows at current prices, according to LookonChain. This projection is bolstered by Solana's unique staking feature, which offers an annualized yield of 5.7%, a stark contrast to Bitcoin's non-staking ETFs.

The Ethereum ETF surge also highlights a shift in institutional appetite toward altcoins. Spot Ether ETFs attracted $9.6 billion in Q3 2025, surpassing Bitcoin's $8.7 billion in inflows, according to Coinotag. Analysts attribute this to growing regulatory clarity and demand for Ethereum's smart contract ecosystem. "Institutions found Bitcoin via ETFs, now they're moving into Ethereum, and other altcoins are coming next," said Leon Waidmann of Onchain. This trend is echoed by Nansen data showing smart money traders accumulating tokens like Uniswap (UNI) and Aave (AAVE) in anticipation of new altcoin ETF approvals.

However, challenges persist. Charles Schwab warned that crypto remains lightly regulated despite the SEC's recent ETF approvals, raising concerns about investor risks. Additionally, BlackRock's absence from altcoin ETF filings could limit inflow momentum, as its Bitcoin ETF alone amassed $28.1 billion in 2025, compared to net outflows of $1.27 billion for other Bitcoin ETFs.

Grayscale's strategic shift from trusts to ETFs, exemplified by GSOL, has improved liquidity and pricing transparency, eliminating the premiums and discounts common in closed-end crypto trusts. Pandl emphasized that diversified crypto ETPs, which offer exposure to multiple tokens, will likely gain traction as investors seek to reduce complexity.

As the crypto ETF landscape expands, Ethereum and Solana appear poised to carve distinct roles. Pandl noted that while both are smart contract platforms, their design differences position them to coexist in institutional portfolios. With over $150 million in Solana ETF inflows already recorded and stablecoin supply surging on the network, the market's next phase may hinge on regulatory developments and macroeconomic stability, according to Yahoo Finance.