As Ethereum ETFs gain on Bitcoin, retail investors see new options

Ethereum exchange-traded funds (ETFs) had their best week since the launch with record net inflows of $907.99 million.

This is the largest weekly inflow since Ethereum ETFs began trading on July 23, 2024, per SoSoValue.

The inflows were heavily concentrated on three consecutive days, July 9, 10, and 11, suggesting strong and sustained investor demand. The largest daily inflow occurred on July 10, when ETH ETFs had an influx of $383.10 million.

The next two strongest days saw a similarly slight disparity: $211.32 million on July 9 and $204.82 million on July 11.

According to market analyst Nate Geraci, ETH still sees strong inflows; three of ETH ETF’s top 10 inflow days have happened this week. Institutional demand is increasing, suggesting growing market sentiment for Ethereum products.

This explosion is particularly strong given that Ethereum ETFs started out slowly. With better regulatory clarity and investors clamoring for them, 2025 looks like it will be their breakout year.

ETH rally generates excitement among investors

ETH is up over 17% over the last week, with a break and hold above $3,000 occurring on July 11. It’s the first time the token has returned to that psychological level in months.

ETF purchases partially fuel the rally, which removes supply from the open market. Plus, since Ethereum gets widespread use across DeFi, smart contracts, and staking rewards, it’s still catching the eye of both retail and institutional investors.

Ethereum’s surge in recent weeks has been sustained, with buying pressure showing few signs of ebbing, and not just a wave of speculators seeking quick gains, CoinMarketCap data shows. Analysts think that as long as macro is conducive, inflation and interest rates are stable, for example, Ethereum will be ready to move higher in the coming weeks.

To add to the intrigue, BlackRock’s Ethereum ETF (ETHA) saw its holdings over 2 million ETH as of July 10. That’s worth about $300 million — a reflection of the growing interest on Wall Street in Ethereum’s long-term value propositions.

As Ethereum ETFs gain on Bitcoin, retail investors see new options

Ethereum ETFs are encroaching on Bitcoin ETFs, the group that has dominated the crypto ETF space. Their 2024 launches were met with cautious optimism and lackluster retail flows for the most part. All of that is starting to change, and fast.

According to reports, BlackRock is purchasing significantly more ETH than BTC. This indicates a narrative shift, with Wall Street investors warming up to the second-largest crypto by market cap. 

One thing setting off this interest is Ethereum’s use as a yield-producing asset through staking, which investors find appealing in a low-return world. The ETH price’s response was not immediate, although accumulation via the ETF would still reduce the coin’s supply.

Thanks to its network, which has a dominant ecosystem play in dApps, DeFi protocols, and NFTs, ETH also has a strong utility-based value proposition.

Suppose other traditional financial institutions enter the crypto market more. In that case, the Ethereum ETF market might expand, accounting for an even higher percentage of the overall crypto ETF market. Although Bitcoin leads the charge in total ETF volume, ETH is gaining on it quicker than most anticipated.

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