Ethereum ETFs Hit Trading Record Amid Price Surge
Nearly a year after their inception, Ethereum exchange-traded funds (ETFs) achieved their highest single-day inflows yesterday, crossing the $726 million threshold, marking the best performance in their history.
- The nine funds experienced their longest consecutive streak of inflows, having gathered over $2.3 billion since July 3.
- These record funds inflows correspond directly with Ethereum’s price reaching its highest level since January.
Ethereum ETFs managed collective assets nearing $14 billion. While interest in these funds has historically lagged the dramatic uptake seen with Bitcoin ETFs, the recent inflows have narrowed the gap.
The price has climbed 23% reaching levels just below $3,500, the highest since January. This momentum is amplified by significant new investment from Ethereum treasury firms.
Peter Thiel-backed BitMine Immersion recently added $500 million worth of Ethereum, pushing its total holdings worth to over $1 billion. Concurrently, gambling marketing firm SharpLink Gaming acquired $225 million worth, following an investment led by Consensys CEO Joseph Lubin.
Separately, growing optimism around the Ethereum network, particularly concerning its role as a stablecoin transaction protocol, is considered a key driver behind the price performance. Analysts believe increased support for the proposed GENIUS Act could bolster this.
“ETH stands to benefit much more from the passage of the GENIUS Act stablecoin bill than does BTC,” reported an analyst.
Diversifying appeal, the potential inclusion of staking rewards is also emerging. Asset manager BlackRock has formally requested approval under the ’19b-4′ rules to allow its largest ETF (ETHA) to stake assets, which could better satisfy institutional investors.
Though BlackRock is the largest ETF provider, with the rest managing combined assets of slightly less than $6.5 billion, U.S. regulators face similar proposals from other issuers. Approval could significantly alter the product’s landscape.
