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- Ethereum ETFs have attracted record inflows of $332.2 million in their first anniversary, portraying investors’ interest.
- Nine Ethereum ETFs, including BlackRock and Fidelity, have raised $8.69B in net inflows so far.
- Staking integration in Ethereum ETFs could soon be approved, offering rewards to long-term investors.
Ethereum spot exchange-traded funds (ETFs) marked their first anniversary of trading on Wednesday, doing so with an impressive surge in inflows. Over the past three weeks, inflows have been among the largest ever, indicating an increase in investor confidence. The increase is pegged on the fact that the US Securities and Exchange Commission (SEC) has approved these ETFs in July 23, 2024.
Nine Ethereum ETFs were introduced, including significant financial institutions BlackRock, Fidelity, and GrayScale. Since their launch, the nine ETFs have recorded a total net inflow of around $8.69 billion in the 12 months. Now assets under management stand at 16.57 billion, according to CoinGlass.
Source: CoinGlass
Ethereum Price Volatility
The streak of net inflows experienced in the last 14 trading days has contributed to the total net inflows by close to half of it, which is approximately $3.9 billion. This string has been a powerful boost in the growth of the funds. The price of Ethereum is volatile, but it has been trading above $3,600 with an 8% growth over the last 12 months, according to CoinGecko. Nevertheless, the price of Ethereum has not been able to surge beyond its previous high of $4,900, which it achieved in November 2021.
The anniversary of the Ethereum ETFs recorded inflows of $332.2 million, one of the highest amounts in a single day since inception. The last two weeks produced six of the seven best inflow days, indicating powerful momentum in investor interest. According to NovaDius Wealth Management president Nate Geraci on X, six of the seven biggest inflow days in the ETF were experienced within the last two weeks.
Also Read: Trump-Linked Crypto Project Buys $13M in Ethereum Ahead of Token Launch
Ethereum ETFs Gaining Traction
Although Ethereum ETFs are performing well, they continue to be dominated by Bitcoin ETFs. The Ether ETFs can easily be outshone by their Bitcoin cousins, which were released in early 2024. And have had a volume of almost $54.5 billion in net inflows. However, Ethereum ETFs are making their way in the market and finding a wide range of investors. They are still gaining momentum among retail and institutional funds.
BlackRock iShares Ethereum Trust (ETHA) is among the most popular with iShares Ethereum Trust receiving $8.9 billion in flows. Conversely, Ethereum Trust (ETHE) by Grayscale has suffered about $4.3 billion of withdrawals. Recently launched spot ETFs have received greater attention, as they have more competitive prices.
In the future, issuers of Ethereum ETFs are investigating how to incorporate staking. This would enable investors to get rewards by locking their funds in the Ethereum network. According to analysts, such staking ETFs may be approved by the SEC in the near future. Which will increase the potential position of Ethereum investors.
Also Read: Ethereum Leads as Crypto Investment Inflows Hit Record $4.39 Billion Weekly
