Ethereum ETF Inflows Hit Record Highs, Will It Kick Off the Alt Season?

Source: cryptoslate

Compiled by: Blockchain Knight

On June 23, the cumulative net inflow of the US-listed spot Ethereum ETF exceeded US$4 billion, just 11 months after its listing.

These products were launched on July 23, 2024, and after 216 U.S. trading days, they had cumulative net inflows of $3 billion as of May 30.

After breaking the $3 billion mark, the spot Ethereum ETF added $1 billion in just 15 trading days, and its lifetime net subscriptions had risen to $4.01 billion as of the close of June 23.

These 15 trading days account for 6.5% of the 231-day trading history, but account for 25% of all the funds invested to date.

BlackRock’s iShares Ethereum Trust (ETHA) drove the growth with $5.31 billion in total inflows, while Fidelity’s FETH contributed $1.65 billion and Bitwise’s ETHW added $346 million.

And Grayscale’s legacy ETHE Trust (which converted to an ETF at launch) recorded outflows of $4.28 billion during the same period.

Daily fund flow data shows this change: on June 11 alone, ETHA took in more than $160 million, and between May 30 and June 23, the trust had five trading days with inflows of more than $100 million.

Grayscale's redemptions slowed down during the same period, resulting in a sharp increase in total capital inflows.

ETHA and FETH charge a 0.25% management fee, in line with the industry median and lower than ETHE's 2.5%.

Lower costs coupled with established primary market relationships continue to direct inflows toward BlackRock and Fidelity, according to a report from CoinShares.

The report, which spoke to brokers who make allocations on behalf of wealth managers, highlighted three factors that drove the June surge: First was a rebound in ETH prices relative to BTC, which coincided with clearer guidance from the IRS on staking income in grantor trust ETFs.

Finally, the surge in inflows was also driven by large rebalancing orders from multi-asset allocators, who view Ethereum as an extension of their portfolio rather than a standalone speculative bet.

The next quarterly 13F filing deadline in mid-July will reveal whether professional managers have joined the late spring influx of funds.

As of March 31, these firms accounted for less than 33% of spot Ethereum ETF assets, suggesting that even as retail money concentrates on low-fee instruments, there is room for broad institutional participation.