Ethereum-based spot ETFs in the US continue to gain momentum, recording $452.72 million in net inflows on Friday, according to data from SoSoValue. This marks the 16th consecutive trading day of positive inflows, bringing the total net inflows since July 2 to $9.33 billion. The strong demand has pushed the total net assets across all Ether ETFs to $20.66 billion, representing about 4.64% of Ethereum’s market capitalisation.
The record streak has seen consistent daily contributions, peaking on July 16 with a massive $726.74 million in inflows. Several sessions during this period recorded over $300 million each, reflecting growing investor confidence in Ethereum’s future, particularly its use in decentralised finance (DeFi), staking, and smart contracts.
BlackRock Dominates Ether ETF Market
BlackRock’s iShares Ethereum Trust (ETHA) led Friday’s session with an impressive $440.10 million in inflows, claiming the largest share among US Ether ETFs. ETHA now manages $10.69 billion in total assets, solidifying its position as the dominant player in the Ether ETF space.
Ether ETFs ride 16-day inflow streak. Source: SoSoValue
Bitwise’s ETHW came in second with $9.95 million, followed by Fidelity’s FETH, which attracted $7.30 million. On the other hand, Grayscale’s ETHE continued to see significant redemptions, losing $23.49 million in a single day. The total outflow from Grayscale’s product now stands at $4.29 billion, making it the worst performer among Ethereum-based ETFs.
This contrast highlights a broader trend: investors appear to be shifting away from older, high-fee products like Grayscale’s and favouring newer, more cost-efficient options offered by major asset managers.
Demand for Ethereum Could Outpace Supply
The sharp rise in Ether ETF investments comes amid increasing expectations that Ethereum will play a critical role in the future of decentralised finance. Matt Hougan, Chief Investment Officer at Bitwise, commented that demand for Ethereum exchange-traded products (ETPs) could reach $20 billion over the next year. That would be equivalent to approximately 5.33 million ETH at current prices.
Matt Hougan, Chief Investment Officer at Bitwise
In comparison, Ethereum’s network is projected to issue only 0.8 million ETH over the same period. This significant imbalance suggests that investor demand for Ethereum could outpace new supply by nearly seven times, potentially pushing prices higher.
Hougan also noted that the growing use of Ethereum for stablecoins and asset tokenisation could further fuel long-term interest in the asset. As institutional investors seek more exposure to the Ethereum ecosystem, ETF inflows are expected to remain strong.
Bitcoin ETFs Rebound After Mid-July Slump
While Ether ETFs have seen steady gains, spot Bitcoin ETFs had a more mixed performance in recent days. On Friday, Bitcoin ETFs registered net inflows of $130.69 million, recovering slightly from mid-week outflows. Between July 21 and July 23, Bitcoin ETFs saw nearly $285 million in combined withdrawals, including a $131.35 million single-day outflow.
Despite the temporary setback, July has had some standout days for Bitcoin ETFs, with inflows of $1.18 billion on July 10 and $1.03 billion on July 11. As of now, the cumulative net inflows into spot Bitcoin ETFs total $54.82 billion, with total net assets valued at $151.45 billion.
The contrasting trends between Bitcoin and Ether ETFs reflect shifting investor sentiment, with Ethereum gaining favour for its expanding utility in decentralised applications and smart contracts.
The surge in Ether ETF inflows over the past 16 days signals growing confidence in Ethereum’s long-term prospects. BlackRock’s dominance and the widening gap between inflows and Ethereum’s limited new supply could lead to further upward pressure on ETH prices. Meanwhile, Bitcoin ETFs continue to perform strongly overall but show more volatility. As institutional and retail interest grows, Ethereum seems poised to play a leading role in the next chapter of crypto investment.
