Ethereum ETFs Experience Record Inflows, Challenges for Bitcoin’s Dominance

Investors have sent record capital flows into Ethereum exchange-traded funds (ETFs), signaling a potential shift from cryptocurrency dominance.

Wednesday marked a landmark day as Ethereum ETFs recorded inflows of $720 million, their highest single-day intake by a significant margin.

These massive inflows contribute to over $2 billion absorbed by Ethereum ETFs in just the past week, accounting for more than 30% of total net investment since their inception.

Industry analyst Nate Geraci described the surge as a “clear acceleration,” pointing to a significant momentum shift as investors seek exposure to Ethereum.

Ethereum funds are now nearly on par with Bitcoin ETFs in terms of inflows. Wednesday’s inflows brought Ethereum ETF performance within closer daily range to the Bitcoin benchmark.

Key Drivers of the Surge

Momentum for Ethereum has strengthened over recent months, fueled by a combination of regulatory progress, structural enhancements, and market cycles.

Recent legislative activity in Washington provides a boost. Late Tuesday, House lawmakers advanced a package crucial for key crypto bills, including the Genius Act. A revote Wednesday resulted in a narrow passage.

The breakthrough was influenced by incorporating anti-CBDC provisions, following a meeting with President Trump, which eased resistance from some Republican legislators.

Financial strategists observe a potential shift in trader focus. With Bitcoin consolidating near record highs, the setup creates potential for an “ETH szn” cycle, as former BitMEX CEO Arthur Hayes termed it.

Market signals also point towards Ethereum. Options data from Deribit indicates a surge in bullish bets, with increased open interest surrounding Ether prices.

Crypto Market Movers

• Ethereum gains 8.8% in past 24 hours to $3,440.
• Ethereum Breaks $3,000 Barrier, Points to Higher Targets.
• Trump administration moves closer on crypto policy.
• Focus shifts as potential “alt season” emerges.
• XRP shows sharp price increase after a 30% surge.