ETH ETF inflows hit a record high, is the spring of ETH coming?

After breaking through the $30 billion mark, the Spot Ether ETF increased by $10 billion in just 15 trading days.

Source: cryptoslate

Compiled by Blockchain Knight

On June 23, the listed SpotEther ETF in the United States has accumulated net inflows exceeding 40 billion US dollars, just 11 months after its listing.

These products were launched on July 23, 2024, after 216 U.S. trading days, with a cumulative net inflow of 3 billion U.S. dollars as of May 30.

After breaking through the $3 billion mark, the Spot Ether ETF increased by $1 billion in just 15 trading days. As of the close on June 23, its lifetime net inflows have risen to $40.1 billion.

These 15 trading days account for 6.5% of the 231-day trading history, but they represent 25% of all funds invested so far.

BlackRock's iShares Ethereum Trust (ETHA) saw a total inflow of $53.1 billion driving this growth, while Fidelity's FETH contributed $16.5 billion, and Bitwise's ETHW added $3.46 billion.

While Grayscale's traditional ETHE trust (which converted to ETF at launch) recorded $4.28 billion in outflows during the same period.

Daily fund flow data shows the change: On June 11 alone, ETHA absorbed over 160 million USD, while during the period from May 30 to June 23, the trust had five trading days with fund inflows exceeding 100 million USD.

The redemption amount of Grayscale has slowed down, leading to a significant increase in total capital inflow.

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

According to a report by CoinShares, the combination of lower costs and mature primary market relationships continues to channel inflows towards BlackRock and Fidelity.

The report emphasizes three factors driving the surge in June, as discussed with the broker representing the wealth manager: first, the rebound in ETH price relative to BTC, coinciding with clearer guidance from the IRS on the staking income in ETFs granted to trusts.

Finally, the large-scale rebalancing orders of multi-asset allocators have also driven a surge in capital inflows, as they view Ether as an extension of their investment portfolio rather than a standalone speculative bet.

The deadline for submitting the 13F form for the next quarter in mid-July will reveal whether professional managers have joined the spring influx of funds.

As of March 31, these companies accounted for less than 33% of the Spot Ether ETF assets, indicating that there is still room for institutional participation despite retail funds concentrating on low-cost tools.