Recently, we witnessed an incredible event in the cryptocurrency market: Ethereum ETFs recorded a record weekly inflow of $907.99 million. This is a historic figure since the launch of these funds on July 23, 2024. And this is just the beginning!
You might remember how the launch of Ethereum ETFs was met with some skepticism at first. Now, several months later, the data shows that demand for these products has become strong and stable. Let’s break down what’s behind this growth.
Record Inflows Amid Growing Interest
These record inflows were concentrated over three consecutive days—July 9, 10, and 11. During this period, the Ethereum ETF attracted incredible amounts: $211 million on July 9, $383 million on July 10, and $204 million on July 11. Notably, July 10 saw the largest daily inflow.
Analysts like Nate Geraci argue that this surge in interest is no coincidence. Over the last few days, three of the ten largest inflows into Ethereum ETFs occurred during this week. Institutional investors are increasingly showing interest in Ethereum, which indicates growing long-term trust in cryptocurrencies.
Interestingly, amidst these results, there’s growing speculation that 2025 could be the breakthrough year for Ethereum.
Ethereum Price Growth and Its Link to ETFs
Along with the rising interest in ETFs and other factors, the price of Ethereum has also shown impressive results: over the past week, ETH surged by 17%, and on July 11, it broke the $3000 mark for the first time in months. While the price increase isn't directly tied to ETF purchases, buying these products does have an indirect effect on reducing the supply in the open market, which fuels the rally.
Interest in Ethereum is also driven by its key advantages—it's widely used in areas such as DeFi (decentralized finance), smart contracts, and even staking programs. These features make Ethereum appealing to both retail and institutional investors, explaining the steady inflow into ETFs.
Why Are Major Players Increasing Their Interest in Ethereum?
Special attention should be given to BlackRock, which, as of July 10, held over 2 million ETH in its Ethereum ETF (ETHA) fund. That’s about $300 million, and such interest from the largest institutional player on Wall Street is certainly noteworthy. Given the rising interest rates and low returns from traditional assets, Ethereum, with its staking opportunities, has become increasingly attractive to investors seeking yield.
Analysts also note that BlackRock is purchasing more ETH than BTC, reflecting a shift in investor preferences: Ethereum is now attracting more attention than its older sibling, Bitcoin. This is an interesting trend since, in the past, the cryptocurrency market was dominated by Bitcoin.
Could Other Financial Institutions Follow Suit?
If this trend continues, we can expect further growth in Ethereum ETFs and an expansion of their market share in the cryptocurrency fund space. While Bitcoin still holds the lead in terms of total ETF volume, Ethereum is rapidly narrowing this gap, which is incredibly intriguing.
It’s likely that, in the future, we will see more traditional financial institutions entering the cryptocurrency market, further strengthening Ethereum’s position and making it a dominant player in the digital asset market.
What do you think? What could drive further growth in Ethereum ETFs? Do you think this trend will be sustainable, or are we just witnessing a temporary surge in interest?
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