Ethereum exchange-traded funds (ETFs) have attracted a record-breaking $726 million in inflows in just one week, marking one of the strongest showings since crypto ETFs began gaining mainstream traction. This surge in capital has pushed Ethereum’s price above $3,400, underlining how institutional appetite is beginning to mirror the earlier Bitcoin ETF craze.
According to CoinShares’ weekly Digital Asset Fund Flows report, these inflows represent the highest volume ever recorded for Ethereum, largely driven by expectations around the pending launch of U.S.-based spot Ethereum ETFs, expected to go live by the end of July 2025.
A Parallel to the Bitcoin ETF Surge
This Ethereum rally mirrors Bitcoin’s own ETF-led price boom. Earlier in 2024, the approval of multiple spot Bitcoin ETFs in the United States — including those by BlackRock, Fidelity, and Ark Invest – brought in over $15 billion in net inflows, as reported by BitKE and Bloomberg. These inflows propelled Bitcoin past $73,000 at its peak in March 2025 before cooling off in Q2.
Notably, BitKE also highlighted that Bitcoin pricing is now largely ETF-driven, with on-chain and retail activity taking a backseat to institutional flows. In fact, ETF volumes now surpass those on traditional spot exchanges – a trend that is now extending to Ethereum.
#BitcoinETFs now dominate U.S. trading
50% of $BTC volume now flows through ETFs – not spot exchanges.
$IBIT (@BlackRock) leads w/ 40%+ share $14.8B in ETF inflows YTD 85% of price discovery now ETF-driven #TradFi giants are coming inhttps://t.co/QxMjI0Op0e pic.twitter.com/IsJBAJN83U
— BitKE (@BitcoinKE) July 16, 2025
Speculation Builds Around Ethereum ETF Approval
Analysts suggest that Ethereum’s inflow spike reflects a buy-the-rumor wave from investors positioning ahead of the spot ETH ETF launch, recently greenlit by the SEC in terms of 19b-4 filings. However, full S-1 registration approvals are still pending, expected to come through later this month.
“Ethereum’s sharp move is being driven by optimism that it will soon enjoy the same institutional access that boosted Bitcoin,” said James Butterfill, Head of Research at CoinShares.
Market Momentum and Outlook
With ETH trading volumes now up 60% week-on-week, and Grayscale’s Ethereum Trust narrowing its discount to net asset value (NAV), market confidence in ETH ETFs appears to be firming up. Meanwhile, Bitcoin remains relatively stable above $66,000, benefiting from continued inflows into its own ETFs, as institutional investors expand their exposure across crypto’s top assets.
While ETF-driven growth introduces more stability and legitimacy to the market, analysts warn that it also ties asset prices more tightly to TradFi sentiment and macroeconomic signals, such as Fed rate decisions and U.S. CPI data.
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