Ethereum ETFs Continue to Rise: Seven Consecutive Weeks of Inflows and Still Going
ETH exchange-traded funds are experiencing a significant phase. For seven consecutive weeks, they have attracted new investments, amassing nearly $300 million in the past week alone. This totals approximately $1.5 billion within just two months.
This marks the longest streak of inflows for Ethereum ETFs since 2020, and the upward trend shows no signs of deceleration. A considerable portion of these recent inflows is originating from Europe, where digital currency regulations are more clearly articulated.
What’s Fueling This Monetary Surge?
Let’s analyze the situation. First, stablecoins are gaining widespread acceptance. Major players like Visa and Stripe are now experimenting with tokenized dollar transactions. Such adoption highlights Ethereum’s relevance, as the majority of stablecoins operate on the Ethereum platform.
Next, we have the earning yield aspect. ETF powerhouses like Invesco and Galaxy have submitted proposals to incorporate locking tokens rewards within spot ETH ETFs. Although the SEC hasn’t granted full approval yet, a recent declaration suggested that locking tokens might not classify as a security. This is quite significant. Anticipate an influx of investors if these ETFs are able to generate passive income through staking.
BlackRock and the U.S. at the Forefront
The majority of the inflows are being generated by U.S.-based spot ETH ETFs. BlackRock’s iShares Ethereum Trust (ETHA) is leading the charge, attracting nearly $281 million in just a week. It has recorded positive inflows for 15 consecutive trading days. This is a robust indicator of confidence, especially with institutional investments at play.
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Wall Street’s Perspective: More Than Just Fad
Bernstein analysts indicate that institutions are no longer regarding ETH as merely a speculative asset. They recognize its function in facilitating stablecoin transactions and protocol fees as justification for long-term holdings. Increased activity on the protocol translates to heightened demand for ETH. This is not just hype; it represents fundamental utility.
Charts Are Heating Up Too
Ethereum has recently revisited a crucial trendline after several unsuccessful breakouts. Concurrently, open interest in Ethereum futures has surged to about $40.7 billion. Coupled with ETF inflows of $400 million over the last week, this sets the stage for a potential move toward the $3,000 level.
However, some indicators remain tepid. Activity on decentralized exchanges is relatively subdued, implying that the average user isn’t yet fully engaged again. This rally is primarily propelled by institutions and ETF traders, rather than grassroots adoption.
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Bitcoin Loses Ground as Ethereum Gains Traction
While Ethereum ETFs are attracting fresh investments, Bitcoin funds are experiencing the contrary. Over $600 million was withdrawn from BTC investment vehicles last week. Some of those funds are likely to shift towards ETH, especially as Ethereum strengthens in terms of narrative and utility.
What to Monitor in the Coming Weeks
Focus is now on the SEC. If regulators give the nod for staking within spot Ethereum ETFs, it could lead to an even greater influx of investments. Investors seeking passive income and upside may view Ethereum ETFs as a perfect blend of benefits.
Simultaneously, Ethereum developers continue to innovate. The latest upgrade, termed Pectra, enhances scalability and performance. Should network activity increase, this strengthens the case for ETH as financial infrastructure, not merely as a crypto token.
This Feels Like a Warm-Up
The seven weeks of inflows indicate that Ethereum is regaining interest, not solely from traders but also from major institutions and asset managers. With staking, protocol enhancements, and stablecoin integration, ETH is evolving beyond a mere trade. It’s beginning to emerge as a fundamental component of the next-generation financial system.
The main event may be imminent if this signals the prelude.
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Key Takeaways
- ETH ETFs have recorded inflows for seven consecutive weeks, bringing in around $80 million and garnering interest from institutional investors.
- ETH’s increasing momentum follows ETF approvals in the U.S., indicating growing acceptance in traditional financial sectors.
- Europe is at the forefront, with a significant portion of ETH ETF inflows coming from jurisdictions with more transparent crypto regulations.
- Ethereum’s functionality across DeFi, NFTs, and stablecoins, combined with its proof-of-stake mechanism, appeals to investors oriented towards ESG concerns.
- Should inflows persist, Ethereum could close the gap with BTC in trader portfolios as spot ETFs become available and regulatory clarity improves.
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