TLDR
- Ethereum ETF inflows reached $729.1 million on Wednesday marking the second-largest daily total since their launch.
- BlackRock’s ETHA led with $500.9 million in inflows while Fidelity’s FETH followed with $154.7 million.
- Ethereum ETF products recorded $2.2 billion in inflows over three days which is nearly seven times more than Bitcoin ETFs.
- ETH price climbed to $4,775 which is within 4 percent of its all-time high from November 2021.
- Monthly Ethereum ETF inflows now represent 500,000 ETH while only 450,000 ETH has been issued since the merge.
Ethereum ETF products have recorded stronger demand than Bitcoin funds for the third consecutive day, with institutional interest accelerating. Latest data shows Ethereum ETF inflows significantly outpacing Bitcoin, further pushing ETH’s price closer to its all-time high. Analysts attribute the surge to heavy allocations from large asset managers and crypto treasury firms.
Ethereum ETF Demand Surges
US spot Ether exchange-traded funds posted $729.1 million in net inflows on Wednesday, marking their second-largest daily total since launch. BlackRock’s ETHA accounted for $500.9 million, while Fidelity’s FETH added $154.7 million, leading the day’s activity. Four other Ethereum ETF products also saw gains, extending a three-day streak of positive flows.
The surge began Monday with a record $1.02 billion in net inflows, followed by $523.9 million on Tuesday. Cumulative Ethereum ETF inflows over the three-day period reached $2.2 billion, nearly seven times Bitcoin’s $330.9 million. Data from SoSoValue indicates Wednesday alone brought $704 million for Ethereum ETFs versus $86.7 million for Bitcoin products.
Ethereum’s price rose to $4,775 early Thursday, now within 4% of its November 2021 peak of $4,900. The token has gained over 60% in the past month, benefiting from strong market sentiment. CoinGlass reported $127.4 million in short positions liquidated over the past 24 hours.
Ethereum price gains as supply tightens
Monthly Ethereum ETF inflows have reached $2.3 billion, representing approximately 500,000 ETH acquired through the products. Since the September 2022 merge, only about 450,000 ETH has been issued, creating a tightening supply environment. Analysts say this imbalance is contributing to Ethereum’s rapid price appreciation.
Corporate participation has also intensified, with crypto treasury firms scaling their ETH holdings. BitMine Immersion, the largest corporate Ethereum holder, announced plans to raise $24.5 billion for further ETH acquisitions. This marks a major increase from its earlier $4.5 billion stock offering.
Ethereum co-founder Vitalik Buterin addressed potential risks linked to treasury accumulation.
“If you woke me up three years from now and told me that treasuries led to the downfall of ETH… my guess would basically be that somehow they turned it into an overleveraged game,” he said.
Bitcoin Sees Lower Inflows
While demand for Ethereum ETFs accelerates, Bitcoin ETFs have posted much smaller gains during the same period. Wednesday’s $86.7 million in Bitcoin inflows contrasts sharply with Ethereum’s $704 million haul. Over the three-day run, Bitcoin ETF inflows totaled $330.9 million.
Bitcoin advocate Samson Mow suggested Ethereum’s rally may trigger eventual capital rotation back into Bitcoin. He claimed long-term ETH holders are using “new narratives” to drive prices before selling for BTC.
“No one wants ETH in the long run,” Mow said, citing what he called the “Bagholder’s Dilemma.”
