For the first time since US spot crypto ETFs launched 18 months ago, Ethereum ETFs attracted more institutional investment than Bitcoin ETFs in a single day.
Ethereum’s Big Day
On Thursday, nine US spot Ethereum ETFs saw a net inflow of $602 million, beating the $522.6 million that flowed into the eleven Bitcoin ETFs. This marks a significant shift, as Bitcoin had dominated inflows since July 2024. This surge followed an even bigger day for Ethereum funds the day before, with a record-breaking $726 million inflow, pushing total holdings close to 5 million ETH and boosting the price above $3,400 for the first time this year.
BlackRock’s iShares Ethereum Trust Leads the Charge
BlackRock’s iShares Ethereum Trust (ETHA) was a major driver, attracting roughly $550 million – its second consecutive record. This surpassed BlackRock’s Bitcoin ETF (IBIT) for the day. Over the past five days, ETHA has seen a massive $1.25 billion inflow, bringing its total assets close to $7 billion – nearly one-fifth of all assets in US Ethereum ETFs. Analysts point out that US spot Ethereum ETFs have seen over $5.5 billion in inflows since their launch, with over $3.3 billion coming in since mid-April.
Why the Ethereum Surge?
Several factors contributed to this surge. The return of high returns on CME Ether futures played a role, although it doesn’t fully explain the massive demand. There’s also increased interest due to Nasdaq’s filing to add native staking to BlackRock’s ETHA. If approved, this would allow the fund to earn network rewards, potentially boosting its yield above 5%, making it attractive as both a growth and income investment.
Bitcoin Still Reigns Supreme (For Now)
Despite Ethereum’s impressive gains, Bitcoin remains the dominant player. Bitcoin ETFs have accumulated $53 billion in net inflows since January 2024 and hold over $150 billion in assets. Bitcoin ETF inflows have been consistently strong, with inflows in 26 out of the last 27 sessions, totaling over $10 billion in new institutional money.
Ethereum’s Momentum
However, Thursday’s results highlight significant momentum for Ethereum. Analysts point to several factors driving this shift, including high staking yields, anticipation of SEC approval for staking-enabled ETFs by the end of the year, and the potential passage of bills that would solidify the commodity status of major cryptocurrencies.
The Future?
Whether this is a lasting trend or a temporary blip remains to be seen. But for now, the fact that Ethereum ETFs outperformed Bitcoin ETFs in daily inflows is a noteworthy development. At the time of writing, ETH was trading at $3,612.