- Ethereum spot ETFs have surpassed US$4B in net inflows, with US$1B added in just 15 trading days, marking a sharp acceleration in institutional interest, led by BlackRock and Fidelity.
- Grayscale’s ETHE continues to bleed, losing over US$4.2B. Despite ETF momentum, ETH’s price slipped 4% this week as bullish sentiment wanes.
- The SEC is weighing on in-kind creation and staking, two mechanics that could change the game for Ethereum ETFs and its price, but the agency has till late 2025 to make a decision.
Ethereum spot exchange-traded funds (ETFs) have crossed a major milestone after breaching US$4B (AU$6.13B) in net inflows. Interestingly, it took around 210 trading days to reach the US$3B (AU$4.06B) mark, but the next billion came in just 15 sessions.
That’s a massive acceleration from institutions that, after months of steady but cautious accumulation, flipped inflows into high gear in late May, with a quarter of all capital entering within a fraction of the total trading period.
As a surprise to no one, BlackRock remains the undisputed heavyweight. Its iShares Ethereum Trust now holds more than US$5.3B (AU$8.13B) gross. Fidelity is gaining ground too with around US$1.6B (AU$2.45B) in inflows.
Related: Bank for International Settlements Warns Stablecoins Fail Key Test
Meanwhile, Grayscale’s ETHE trust continues to bleed ETH, shedding more than US$4.2B (AU$6.4B). The outflow isn’t surprising. Grayscale still charges a 2.5% fee, ten times the cost of BlackRock and Fidelity’s 0.25%. That kind of spread is untenable in a maturing market where fees are more competitive than ever.
Ethereum Price Outlook
Ether lost ground this week, shedding 4 % while the broader crypto market edged higher. With BTC brushing against all-time highs, ETH’s failure to reclaim US$2,800 (AU$4,285) has exposed cracks in the bullish conviction.
Perpetual funding rates tell the story. Just two weeks ago, traders were paying a 10% annualised premium to hold long positions. That’s now flipped negative, with a -2% rate, according to data from Coinalyze, signaling that bullish momentum has cooled off sharply, a clear shift in sentiment.
What could revive the trend is the US Securities and Exchange Commission (SEC). The agency is weighing in on key changes that could redefine ETH ETF mechanics: approving in-kind creations and native staking. A preliminary decision is expected by late 2025.
Related: Pompliano-Linked ProCap Buys 3,724 BTC as It Prepares for $1 B SPAC Debut
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