Ethereum ETFs Mark One-year Anniversary in USA
Spot Ethereum exchange-traded funds (ETFs) in the United States have officially marked one year of trading, coinciding with a notable streak of inflows over the past three weeks, including some of their most significant days to date.
The U.S. Securities and Exchange Commission approved these spot Ether ETFs on July 23, 2024. Funds from major firms such as BlackRock, Fidelity, 21Shares, Bitwise, Franklin Templeton, VanEck, Invesco, and two separate offerings from Grayscale have since entered the market.
In the year since launch, the nine ETFs have seen approximately $8.69 billion in net inflows, with total assets under management reaching $16.57 billion, according to CoinGlass. Nearly $3.9 billion of these inflows occurred consecutively over the last 14 trading days.
Despite Ether’s price fluctuating between $1,500 and $4,000 during this period—and still trailing its all-time high of nearly $4,900—its ETFs have had a strong performance. While they often attract less attention than Bitcoin ETFs, which have drawn nearly $54.5 billion in net inflows since their own debut earlier in 2024, Ether ETFs are holding their own.
Ether is currently priced above $3,600, with a modest intraday decline, but it remains over 8% higher year-on-year based on CoinGecko data.
On the anniversary of their launch, Ether ETFs logged their seventh-highest inflow day, bringing in $332.2 million on Wednesday alone. Nate Geraci, president of NovaDius Wealth Management, noted that six of the top seven inflow days for these ETFs occurred in just the past two weeks. The highest single-day inflow was recorded on July 16, totaling $726.6 million.
BlackRock’s iShares Ethereum Trust ETF (ETHA) has captured the majority of net flows over the past year, with $8.9 billion in inflows. This performance has helped offset nearly $4.3 billion in net outflows from the Grayscale Ethereum Trust ETF (ETHE), which converted from a trust structure and has seen declining investor interest as its discount to net asset value has narrowed.
Geraci also pointed out that “nearly 1,000 ETFs have launched” since the introduction of the ETH funds, and BlackRock’s product “leads all of them in inflows.”
Looking ahead, ETF issuers are now focusing on adding staking features. Staking allows Ethereum holders to earn rewards by locking up their assets to support the network. Analysts believe the SEC may approve staking-enabled ETFs as soon as this month. Broader crypto ETF concepts—such as multi-asset or Solana-focused products—are also under consideration.
Earlier this month, REX Shares and Osprey Funds launched the first ETF to incorporate staking. It holds Solana and distributes staking rewards to its investors.
Sources:
https://cointelegraph.com/news/us-ethereum-etfs-1-year-us-market
https://x.com/NateGeraci/status/1948203466016342116
https://x.com/NateGeraci/status/1948009650596741322