Ethereum News Today: Ethereum ETFs Pull In $729.1M Inflows as Institutional Demand Surges

Ethereum-based exchange-traded funds (ETFs) have experienced a wave of robust inflows, with recent figures highlighting a shift in institutional capital toward the digital asset. On a notable Wednesday, spot Ethereum ETFs in the U.S. recorded a significant $729.1 million in daily inflows, marking their second-largest single-day influx since their launch [1]. BlackRock’s ETHA led the charge, absorbing $500.9 million, while Fidelity’s FETH added $154.7 million. The inflows followed a record $1.02 billion on Monday and $523.9 million on Tuesday, indicating sustained momentum throughout the week [1].

The surge in demand is reflected in the performance of ETH, which saw a 3.44% rise over the previous 24 hours, trading at $4,772 [1]. Over the past six days, Ethereum ETFs have attracted more than $2.3 billion in net inflows, contributing to a price surge pushing ETH above $4,900. This marks a notable shift in capital flow from Bitcoin to Ethereum, signaling increased confidence in Ethereum’s utility and long-term value [1].

Analysts from Standard Chartered have revised their year-end price forecast for Ethereum from $4,000 to $7,500, citing institutional purchases, ETF flows, evolving stablecoin policies, and a reinforced technical outlook as key factors [1]. According to the firm, ETFs have absorbed 3.8% of Ethereum’s circulating supply since June, outpacing treasury firm purchases that account for 1.9% of the total supply. In August alone, spot Ethereum ETFs have taken in the equivalent of 500,000 ETH, exceeding the 450,000 ETH issued post-merge [1].

The inflows have also had a notable impact on Ethereum’s supply dynamics. Since the energy-efficient merge in September 2022, the network’s supply has grown by just 0.13%, indicating a gradual shift toward deflationary pressure as ETF demand outstrips issuance [1]. Market observers suggest this trend could have structural implications, with Standard Chartered analysts projecting the potential for Ethereum treasury firms to increase their holdings to 10% of the circulating supply, should current buying patterns continue [1].

While Bitcoin ETFs also recorded positive inflows, including a $86.9 million net inflow on the same Wednesday, the interest in Ethereum ETFs remains stronger. The data reflects a broader shift in institutional sentiment, with Ethereum’s role in decentralized finance and smart contract ecosystems enhancing its appeal [1].

The continued inflow of capital into Ethereum ETFs is part of a larger trend of digital asset integration into institutional portfolios. Alongside Ethereum, tokenized stocks and other digital securities have attracted investor interest, signaling an expanding role for blockchain-based assets in mainstream finance [1].

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[1] https://coinmarketcap.com/community/articles/689d8a7316df2b56b14bb30d/