US Ethereum Exchange Traded Funds Draw Higher Inflows Than Bitcoin Products
US Ethereum exchange-traded funds recorded higher investor inflows than Bitcoin ETFs for six consecutive trading days this week, according to Cointelegraph. Ethereum ETFs attracted $2.4 billion in net inflows during this period, while Bitcoin ETFs received only $827 million. BlackRock's iShares Ethereum ETF captured the largest share with $1.79 billion, representing 75% of total Ethereum ETF inflows.
Fidelity Ethereum Fund achieved its best single day on Thursday with $210 million in net inflows. This surpassed its previous record of $202 million set on December 10, 2024. The performance represented a 4% improvement over the fund's previous high-water mark. BitMine Immersion Technologies purchased $2 billion worth of Ethereum over 16 days, becoming the largest corporate holder of the cryptocurrency.
Companies currently hold 2.31 million Ethereum tokens in their treasuries, representing 1.91% of the total circulating supply. Meanwhile, US Bitcoin ETFs ended a 12-day inflow streak on Monday with net outflows of $131 million. The previous 12-day period had recorded $6.6 billion in net inflows before the reversal.
Why This Matters
The sustained Ethereum ETF inflows represent the longest consecutive daily gain streak of 2025, according to Bloomberg. This $812 million influx over 14 trading sessions demonstrates renewed institutional appetite for the second-largest cryptocurrency. Open interest for Ethereum futures on CME Group surged 65% in May, approaching record highs and reflecting growing professional trader engagement.
Institutional investment flows directly impact cryptocurrency market liquidity and price stability. When large funds allocate capital to Ethereum ETFs, they remove tokens from circulating supply while providing price support. The trend breaks Bitcoin's traditional dominance in institutional crypto allocations, which historically captured the majority of professional investment attention.
Corporate treasury moves amplify this shift in investment patterns. As we reported, national governments are exploring complementary systems that merge central bank digital currencies with Bitcoin reserves, creating frameworks that balance digital currency innovation with traditional monetary policy. This institutional infrastructure development supports broader cryptocurrency adoption across asset classes.
Industry Implications
The reversal in ETF flows reflects changing institutional perspectives on cryptocurrency portfolio construction. Daily Hodl reported record $4.39 billion weekly inflows to digital asset products, with Ethereum leading at $2.12 billion. This represents the largest weekly institutional crypto investment on record, surpassing December 2024's post-election peak.
Professional investors increasingly view Ethereum as an undervalued alternative to Bitcoin, according to analysis from Coinbase. The shift occurs as technical factors like corporate treasury flows and ETF liquidity become primary price drivers rather than development fundamentals. Ethereum's correlation with broader crypto markets reached 0.92 in July, making it attractive for balanced cryptocurrency exposure strategies.
Traditional financial institutions face pressure to diversify crypto holdings beyond Bitcoin-only strategies. Ethereum's smart contract capabilities and decentralized finance ecosystem provide different risk-return profiles compared to Bitcoin's digital store-of-value proposition. Galaxy Digital CEO Michael Novogratz predicts Ethereum will reach $4,000 and outperform Bitcoin over six months, citing supply constraints from large corporate purchases.
The competitive landscape now includes multiple viable institutional crypto products rather than Bitcoin-dominated options. Regulatory watchers assign 99% probability to Solana ETF approval, expanding professional crypto investment choices further. This diversification reduces single-asset concentration risk for institutional portfolios while potentially moderating Bitcoin's market dominance over time.
