According to data from Farside, U.S.-approved spot Ethereum (ETH) exchange-traded funds (ETFs) have recorded a significant $219 million in inflows, extending their impressive streak to 18 consecutive days. This remarkable run underscores growing institutional confidence in ETH, with investors increasingly favoring the asset class.
Spot Ether ETFs Attract Huge Inflows
Concluding Tuesday, BlackRock’s ETHA took in $223.7 million, becoming the leading fund of the day. Vaneck’s ETHV and Fidelity’s FETH, among others, were dormant. However, 21Shares CETH spoiled the day, shedding $5.1 million.
The sustained inflows into Ethereum ETFs starkly contrast with the recent outflows observed in ETFs backed by the world’s leading cryptocurrency bitcoin (BTC). While bitcoin ETFs faced challenges and have closed some business days in the red, Ether ETFs have continued to attract capital. Notably, Ether ETF has accumulated approximately $5.4 billion in less than three weeks.
Notably, the uptrend comes as regulatory clarity and institutional adoption increasingly favor Ethereum over Bitcoin. The divergence highlights a structural shift in investor sentiment, driven by Ethereum’s ongoing upgrades. It also depicts a growing adoption in decentralized finance (DeFi) and smart contract ecosystems.
Meanwhile, institutional investors are reassessing risk and return profiles, favoring Ethereum-based products over Bitcoin due to its technological advancements and growing adoption. This shift positions Ethereum as a dynamic asset class, influencing market dynamics.
Regulatory Endorsement For In-kind ETF
Recall that the United States Securities and Exchange Commission (SEC) has approved in-kind creations for crypto ETFs. This approval allows direct swaps of crypto assets for ETP shares. This change streamlines operations and reduces costs, potentially benefiting institutions.
Asset managers like BlackRock and VanEck are making progress in this area. While retail investors may face limitations due to broker restrictions. Meanwhile, the approval could pave the way for pending crypto ETPs.
The SEC is working towards clearer regulations, with a new listing process that may shorten approval times. This move may offer tax benefits and enhance market liquidity, improving ETF efficiency. However, decisions on Solana and XRP ETFs are expected by fall 2025.
