Ethereum News Today: Institutional FOMO Drives Ether ETFs Past Bitcoin in Inflows

US spot Ether ETFs added $287.6 million in inflows this week following a $59.3 million outflow on August 15, ending an eight-day inflow streak that accumulated $3.7 billion. The outflow was the second-largest since the products launched, but the overall inflow trend remains strong. Total inflows for the period reached $12.7 billion, indicating sustained investor demand for spot Ether ETFs. BlackRock’s iShares Ethereum Trust and Fidelity’s Ethereum Fund were among the top performers, with the former accounting for $640 million and the latter $277 million in a single day of inflows on August 12 [2].

The inflows have significantly boosted the assets under management for U.S. spot Ether ETFs, which now hold $23.4 billion in total assets. This represents a 165% increase from mid-May and amounts to over 8% of the circulating supply of Ether. The inflows have also outpaced those for Bitcoin ETFs in recent weeks, with Ether ETFs pulling in $639 million in one session, nearly triple the $231 million recorded for Bitcoin ETFs [2]. Despite recent volatility, the overall flow pattern remains bullish, with Ethereum ETFs now holding more than 5% of the total ETH supply, according to on-chain data [5].

Ether’s price, however, has experienced a minor pullback after nearly reaching its 2021 all-time high. According to CoinMarketCap, Ether fell just 1.94% short of $4,878 on Thursday before retreating to $4,448 at the time of publication. The cryptocurrency has still seen a 29.63% increase over the past 30 days. Analysts note that sustained inflows are a key factor in maintaining upward momentum. Jake Kennis from Nansen emphasized that “the rally will hold as long as the flows and narrative remain strong,” while traders like Langerius and Merlijin The Trader see continued inflows as a sign of institutional FOMO and potential for Ether to reach $10,000 [3].

Corporate Ethereum accumulation has also seen a notable surge, particularly from firms like BitMine Immersion, which now holds 1.52 million ETH valued at $6.6 billion. The firm added 373,000 ETH in a single week and plans to raise $20 billion more to acquire up to 5% of the total Ethereum supply. This aggressive accumulation strategy is reshaping how institutions view Ether, with BitMine and other firms potentially tightening the supply and influencing market liquidity [4].

Meanwhile, Ethereum staking has reached a record high, with over 877,106 ETH ($3.88 billion) queued for unstaking. While this could signal increased profit-taking, DeFi analyst Ignas noted that strong buying pressure from ETFs and treasury firms is mitigating some of the selling pressure. This dynamic suggests that the market is currently in a phase of rebalancing, where institutional demand is absorbing much of the volatility from unstaking activity [3].

Despite the recent outflow on August 15, the broader market outlook for Ether ETFs remains positive. The ETFs have accumulated more than 10 million ETH since their launch in July 2024, and their continued growth is seen as a strong indicator of Ethereum’s institutional adoption. As corporate and institutional players continue to accumulate and ETFs maintain steady inflows, Ether’s market dynamics may evolve toward greater scarcity and price resilience, especially if inflows persist over the coming months [5].

Source:

[1] Spot Ether ETFs post outflows after 8-day $3.7B inflow streak (https://cointelegraph.com/news/ether-etf-outflow-day-inflow-streak-billions-eth-price-predictions)

[2] Ether ETFs Absorb Record $1 Billion as Inflows Eclipse ... (https://thedefiant.io/news/markets/ether-etfs-absorb-record-1-billion-inflows-eclipse-bitcoin-funds-21a6b2cf)

[3] US Spot Ether ETFs See $59.3M Outflows, Ending 8-Day ... (https://coinnews.com/news/cryptocurrency/us-spot-ether-etfs-see-59-3m-outflows-ending-8-day-inflow-run)

[4] Ethereum News Today: Corporate ETH Accumulation Surges (https://investinghaven.com/crypto-blockchain/coins/ethereum-news-today-corporate-eth-accumulation-surges-could-one-firm-control-5-of-supply)

[5] "US Spot Ethereum ETFs Hold Over 5% of ETH Supply" (https://thecurrencyanalytics.com/altcoins/us-spot-ethereum-etfs-now-control-over-5-of-eth-supply-191438)