tl;dr
Spot Ethereum ETFs listed in the US surpassed $4 billion in cumulative net inflows by June 23, 2024, eleven months after launch. After taking 216 trading days to reach $3 billion by May 30, they added $1 billion in just 15 trading days. BlackRock’s iShares Ethereum Trust led with $5.31 billion inflo...
Spot Ethereum (ETH) exchange-traded funds (ETFs) listed in the US surpassed $4 billion in cumulative net inflows by June 23, 2024, marking a significant milestone just eleven months after their debut. These ETFs launched on July 23, 2023, and took 216 trading days to reach $3 billion in inflows by May 30, only to add an additional $1 billion in just 15 trading days, highlighting a sharp acceleration in investor interest.
The surge was primarily driven by BlackRock’s iShares Ethereum Trust (ETHA), which led with $5.31 billion in gross inflows, followed by Fidelity’s FETH contributing $1.65 billion, and Bitwise’s ETHW bringing in $346 million. Meanwhile, Grayscale’s legacy ETHE trust experienced $4.28 billion in outflows during the same timeframe, as investors shifted funds toward lower-fee and newer options.
Lower management fees have played a crucial role in steering demand. Both ETHA and FETH charge 0.25% fees, substantially undercutting Grayscale’s ETHE’s 2.5% fee rate, making the former more appealing to cost-conscious investors. Additionally, strong primary-market relationships established by issuers like BlackRock and Fidelity have helped capture inflows from wealth managers and institutional players.
Several factors fueled the sudden inflow spike in June: a rebound in ETH’s price relative to Bitcoin, clearer IRS guidance regarding staking income within grantor-trust ETFs, and larger rebalancing orders from multi-asset allocators incorporating ETH as a strategic portfolio extension rather than a speculative asset. Despite these inflows, institutional ownership of spot Ethereum ETFs remains below 33%, indicating substantial room for further institutional adoption and growth.
This momentum suggests a maturing market where lower fees, regulatory clarity, and strategic asset allocation converge to drive significant capital into Ethereum ETFs. Investors and market watchers alike should watch upcoming filings and reports for further insights into how professional managers are positioning themselves in this evolving crypto investment landscape.