Ethereum ETF Inflows Record, Is Spring Coming for ETH?
Source: cryptoslate
Compilation: Blockchain Knight
On June 23, the cumulative net inflow of US-listed spot Ethereum ETFs exceeded $4 billion, just 11 months after its listing.
The products were launched on July 23, 2024, and after 216 U.S. trading days, cumulative net inflows amounted to $3 billion as of May 30.
After breaching the $3 billion mark, the spot Ethereum ETF added $1 billion in just 15 trading days, and its lifetime net subscription had risen to $4.01 billion as of the close of trading on June 23.
These 15 trading days represent 6.5% of the 231-day trading history, but account for 25% of all invested funds to date.
BlackRock's iShares Ethereum Trust (ETHA) drove the growth with a total inflow of $5.31 billion, while Fidelity's FETH contributed $1.65 billion and Bitwise's ETHW added $346 million.
Grayscale's traditional ETHE trust, which converted to an ETF at launch, recorded an outflow of $4.28 billion over the same period.
Daily flow data shows the change: on June 11 alone, ETHA absorbed more than $160 million, while between May 30 and June 23, the trust saw inflows of more than $100 million on five trading days.
During the same period, the redemption amount of grayscale slowed down, resulting in a significant increase in total capital inflows.
ETHA and FETH charge an administration fee of 0.25%, which is on par with the industry median and lower than ETHE's 2.5% rate.
According to a report by CoinShares, lower costs, combined with mature primary market relationships, continue to direct inflows to BlackRock and Fidelity.
The report, which spoke to brokers who make allocations on behalf of wealth managers, highlighted three factors that drove the surge in June: the first was the rebound in ETH price relative to BTC, which coincided with the IRS providing clearer guidance on staking income in grantor trust ETFs.
Finally, the surge in inflows has also been driven by massive rebalancing orders from multi-asset allocators, who see Ethereum as an extension of their portfolios rather than independent speculative bets.
The next quarterly Form 13F filing deadline in mid-July will reveal whether professional managers have joined the late-spring influx of funds.
As of March 31, these companies accounted for less than 33% of spot Ethereum ETF assets, suggesting that there is still room for broad institutional participation even if retail funds are concentrated in low-fee instruments.