Ethereum News Today: Ethereum Market Cap Surges 5% to $422.7 Billion on ETF Inflows

Ethereum's market capitalization surged to $422.7 billion following a 5% price increase, pushing its value above $3,400. This significant jump in price highlights the growing interest and investment in the Ethereum network, which has been steadily gaining traction in the cryptocurrency market. The rise in Ethereum's market cap is a testament to its increasing adoption and the confidence investors have in its technology and potential for future growth.

The surge in Ethereum's price was driven by a wave of capital flowing into spot exchange-traded funds (ETFs) tied to the crypto. Nine ETH ETFs saw their largest-ever daily net inflow, totaling $726.74 million, with BlackRock’s ETHA ETF alone pulling in $499 million. This spike in ETF interest is part of a larger July trend, with ETH funds attracting $2.27 billion in net inflows so far this month, the highest monthly figure since these investment vehicles launched in July 2024. This influx of capital indicates strong institutional interest in Ethereum, with eight of the nine funds logging positive flows for the day.

Rachael Lucas, a crypto analyst, noted that Ethereum is no longer being treated like a trading token but rather as a long-term institutional asset. She pointed out that the ETFs now hold about 4% of Ethereum’s total market cap, highlighting the significant capital pouring into the cryptocurrency. Lucas also mentioned that the combination of bullish chart setups, capital rotation out of Bitcoin, and more than $2.5 billion in daily trading volume is driving the breakout in Ethereum's price. This analysis suggests that the price surge is being driven by both fundamentals and sentiment.

In addition to the institutional interest, Ethereum is also being stockpiled on-chain. SharpLink Gaming, backed by Consensys, has overtaken the Ethereum Foundation as the largest known ETH holder. As of July 15, it controls 280,706 ETH, and it added another 20,279 ETH on the day of the price surge. This entity is moving tens of millions of dollars in ETH, indicating a strong belief in the long-term value of the cryptocurrency.

GameSquare Holdings, a company focused on the gaming industry, also announced a major underwritten public offering of 46,666,667 shares at $1.50 each, raising $70 million in gross proceeds before costs. The company plans to use the bulk of this raise to expand its Ethereum position, as part of its alliance with Dialectic, a crypto-focused capital management and yield firm. Justin Kenna, GameSquare’s CEO, stated that this raise marks a pivotal milestone for the company, enabling it to move with speed and scale to build one of the most ambitious Ethereum treasury strategies in the public markets. The company is targeting ETH deployments across Dialectic-engineered strategies that have historically produced 8–14% on-chain yields, with the potential to deliver millions in annual incremental revenue.

Kenna emphasized that the company is staying fully committed to its Ethereum strategy and is focused on building long-term value for shareholders. The deal includes a 15% overallotment option, which, if exercised, would increase the total raise to $80.5 million. This comes on top of another $9.2 million raised just last week, bringing the total gross proceeds aimed directly at Ethereum to more than $90 million. The company's strategy involves using the cash flow generated from ETH deployments to fund further ETH purchases and support broader growth initiatives across its platform.