Ethereum News Today: Spot Ethereum ETFs See 88% Inflow Ratio to Bitcoin ETFs

One year ago, the United States financial market saw the introduction of spot Ethereum exchange-traded funds (ETFs), providing investors with a regulated way to gain exposure to the second-largest cryptocurrency without directly holding it. The past twelve months have been marked by significant developments for these ETFs, from a slow start with minimal inflows to periods of outflows and now massive positive flows. Despite these fluctuations, spot Ethereum ETFs have played a crucial role in driving institutional adoption of cryptocurrencies since their inception.

On their debut day, the nine spot Ethereum ETF products collectively recorded $106 million in positive flows. However, this was significantly influenced by over $484 million in outflows from Grayscale’s Ethereum Trust (ETHE). BlackRock’s spot Ethereum ETF (ETHA) led the way on the first day with $266 million in inflows and continues to maintain its leading position. Bitwise’s ETHW followed with $204 million, while Fidelity’s FETH attracted $71 million. Other asset managers, including 21Shares, Invesco, VanEck, and Franklin Templeton, saw inflows ranging from $13 million to $7.5 million.

Comparing the most recent trading day to the debut of spot Ethereum ETFs, it is evident that these funds have made substantial progress. On July 18, the ETFs collectively recorded inflows surpassing $402 million. Notably, this figure is not the highest the market has seen. On July 16, spot Ethereum ETFs amassed over $726 million in positive flows, marking their highest ever. The next day, the products recorded their second-largest daily inflow of $602 million. These funds have been on an 11-day inflow streak since July 5, amassing over $2.8 billion in flows. BlackRock remains the leader in assets under management (AUM), with a total of $7.92 billion, followed by ETHE with $3.46 billion in AUM.

The journey for spot Ethereum ETFs has been challenging, especially with ether performing poorly in this cycle. After a strong first day, the following trading days were concerning, with outflows and lower-than-expected ETH purchases. As Grayscale’s Trust continued to see outflows, flows into other products could not keep up. This trend persisted until mid-November when the ETFs began an 18-day inflow streak. Notably, the funds have since broken that record with a 19-day positive flow streak that ended on June 12.

As investors continue to heavily invest in ETH, the future of spot Ethereum ETFs remains promising. The market's renewed interest in Ethereum has been evident, with Ethereum ETFs experiencing two consecutive record-breaking days. On one of these days, the ETFs saw a staggering $700 million in inflows, highlighting the growing investor enthusiasm for Ethereum. This surge in interest has led to historic daily inflows of $602.02 million, marking the first time Ethereum ETFs have surpassed Bitcoin ETFs in daily inflows.

The inflows into spot Ethereum ETFs have been particularly impressive. On July 17, these ETFs recorded a net inflow of $602 million, the second-highest single-day inflow in history. This inflow not only surpassed previous records but also indicated a strong shift in investor preference towards Ethereum. The total inflow of $2 billion since July 4th further underscores the growing U.S. investor interest in Ethereum, with institutional investors playing a significant role in this trend.

The performance of Ethereum ETFs has been robust, with a total inflow of $1.78 billion this week, compared to $2.02 billion for Bitcoin ETFs. This puts the ETH/BTC inflow ratio at 88%, the third highest ever recorded. The cumulative inflows since early July have exceeded $2 billion, representing the strongest weekly performance since ETH ETFs began trading. This performance has outpaced even the most optimistic analyst forecasts, demonstrating the resilience and attractiveness of Ethereum as an investment option.

The sustained interest in Ethereum ETFs is evident in the net inflow of $402.5 million for 11 consecutive trading days. BlackRock's ETHA has been a significant contributor to this trend, attracting substantial inflows and maintaining its position as a leading Ethereum ETF. The flow tallies for Thursday put net subscriptions across the nine U.S. spot Ether ETFs at $602 million, edging out the $522.6 million that landed in the 11-strong Bitcoin ETFs. This historic first underscores the growing dominance of Ethereum in the ETF market.