Ethereum Sees $1.25 Billion ETF Inflows in Three Weeks

Ethereum is experiencing a surge in ETF inflows, with over $1.25 billion worth of ETH added by ETFs in under three weeks. This significant increase in institutional buying signals strong conviction in Ethereum’s long-term value. The aggressive bidding, coupled with a shrinking supply due to staking, is creating favorable market conditions for bulls. Many traders view this activity as a strategic accumulation phase ahead of a larger price move.

Regulatory developments are also contributing to the optimism surrounding Ethereum. The anticipated Genius Act, which aims to regulate stablecoins, could accelerate capital inflows into Ethereum’s ecosystem. Currently, a substantial portion of stablecoins like USDT and USDC reside on Ethereum, positioning it as a key player in the stablecoin sector. Additionally, the Layer 2 network Base, powered by Ethereum, is gaining traction as major financial institutions like JP Morgan explore stablecoin-backed bank deposits.

Another significant development is the potential approval of an Ethereum Staking ETF. With 29% of ETH in circulation already staked, earning users a consistent yield, the approval of a staking ETF could attract more large investors. The next regulatory review is scheduled for July 4, when Bitwise’s staking ETF application will be evaluated. If approved, it could draw more capital into the ETH ecosystem and trigger a re-rating of its value proposition.

Ethereum’s dominant position in the crypto market is underscored by its holding of over 55% of all total value locked (TVL). The growth of Layer 2 networks and the rise of tokenized real-world assets (RWAs) are expected to further boost adoption. These applications are increasingly built on Ethereum due to its security and flexibility. With rising institutional interest, new regulatory clarity, and staking rewards, Ethereum is shaping up as a multi-faceted asset. If the current momentum continues, some analysts believe that reaching $10,000 for ETH is not only possible but a matter of timing.