Ethereum News Today: Ethereum ETPs Attract $1.59 Billion Inflows Amid Altcoin ETF Approval Hopes

Ethereum-focused exchange-traded products (ETPs) attracted significant capital inflows last week, signaling investor anticipation for potential U.S. altcoin ETF approvals. Ether ETPs alone saw $1.59 billion in inflows, marking the second-largest weekly gain in their history, while total crypto ETP inflows reached $1.9 billion, extending a 15-week positive streak [1]. This surge contrasted with Bitcoin ETPs, which experienced $175 million in outflows, ending a 12-day inflow run [1]. Analysts attribute the shift to growing speculation that regulatory frameworks could soon facilitate the launch of altcoin ETFs, redirecting capital away from Bitcoin and toward Ethereum and other alternative cryptocurrencies [1].

The inflows into Ether ETPs were driven by Ethereum’s ecosystem growth and expectations of regulatory clarity, with products tracking the blockchain’s assets outperforming Bitcoin-centric offerings. James Butterfill, head of research at CoinShares, noted that the trend reflects strategic positioning for potential U.S. ETF approvals rather than a broad altcoin rally [1]. Supporting this, Ethereum’s price surged past $3,900—a 62% increase in the past month—as investors funneled capital into Ethereum-linked products [2]. BlackRock’s Ethereum ETF, $ETHA, surpassed $10 billion in assets under management, becoming the third-fastest ETF to achieve this milestone [2].

Solana and XRP ETPs also benefited from the inflow trend, adding $311.5 million and $189.6 million, respectively, while Litecoin and Bitcoin Cash saw minor outflows of $1.2 million and $0.7 million [1]. Technical indicators further reinforced the narrative of altcoin interest. A “golden cross” pattern emerged as Ethereum’s 50-day moving average crossed above Bitcoin’s—a historical precursor to altcoin rallies [4]. On-chain activity for Ethereum surged 288% in the last week, reflecting heightened institutional demand [5].

Regulatory developments have bolstered investor optimism. The passage of the Genius and Clarity Acts in the U.S. has created a more favorable environment for altcoin ETFs, with experts like Tom Lee of Fundstrat Global Advisors highlighting Ethereum’s potential as stablecoin infrastructure expands [6]. Eric Trump, son of U.S. President Donald Trump, publicly endorsed Ethereum, predicting a price target of $8,000 [7]. Meanwhile, 21Shares filed for an ETP linked to Ondo’s real-world asset token, expanding institutional access to altcoin-related products [3].

Despite the bullish momentum, risks remain. The Altcoin Season Index currently stands at 43/100, indicating cautious positioning, while Bitcoin’s exchange inflows hit their highest level since July 2024, suggesting possible capital rotation dynamics [8]. The crypto market dipped 1.82% in the past 24 hours, underscoring sensitivity to macroeconomic conditions [10]. However, institutional confidence in Ethereum is evident, with initiatives like The Ether Machine—a $1.6 billion Ethereum-focused entity—targeting a Nasdaq debut [9].

As the market approaches late July, the focus on Ethereum ETPs and altcoin ETF speculation highlights a pivotal moment in crypto’s evolution. With institutional flows accelerating and technical indicators flashing bullish signals, investors are closely monitoring regulatory developments that could shape the next phase of market dynamics.

Sources:

[1] "Crypto funds post $1.9B inflows as Ether leads weekly gains" - TradingView

[2] "BlackRock’s Ethereum ETF Surpasses $10B, Becomes 3rd Fastest in History" - CoinMarketCap

[3] "21Shares Files for ETF Tracking Ondo’s Real-World Asset Token" - CoinMarketCap

[4] "Altcoin Season Begins, Says Crypto Expert" - CoinMarketCap

[5] "Ethereum’s On-chain Volume Surges 288% — Is a Breakout Next?" - CoinMarketCap

[6] "Tom Lee Reveals What Makes Ethereum His Top Bet" - CoinMarketCap

[7] "Eric Trump Says Ethereum is Undervalued, Backs Analyst’s $8,000 Target" - CoinMarketCap

[8] "Bitcoin Exchange Inflows Spike — What Does It Mean for Altcoins?" - CoinMarketCap

[9] "The Ether Machine Targets Nasdaq Debut With $1.6B in Capital and 400K ETH" - CoinMarketCap

[10] "Crypto Market Slips on Senate Bill and Altcoin Leverage Risk" - CoinMarketCap