Ethereum ETFs Smash Records with $1.01B Inflows, Outpacing Bitcoin ETF

• Ethereum ETFs post record $1.01B inflows, surpassing Bitcoin ETFs by a wide margin.
• BlackRock and Fidelity lead ETH ETF surge as institutional demand hits an all-time high.
• Falling ETH exchange balances and rising staking levels fuel a bullish price outlook.

Ethereum ETFs posted their strongest daily performance to date, with inflows crossing $1.01 billion on Monday and outpacing Bitcoin ETFs by a wide margin. BlackRock’s ETHA fund drew $640 million while Fidelity’s FETH attracted $277 million. This surge coincided with Ethereum’s price reaching $4,358, its highest since late 2021.

Ethereum ETFs absorbed more than five times the inflows recorded by Bitcoin ETFs, which saw $178 million on the same day. The movement reinforced Ethereum’s growing share in institutional portfolios. 

The Ethereum ETFs milestone extended a month-long run of gains fueled by strong on-chain data and reduced exchange balances. This combination strengthened the outlook for further upward price action.

Ethereum ETFs Show Strong Institutional Demand

Ethereum ETFs also experienced the largest inflow day in history, breaking all existing records. The total cumulative inflow by Ether ETFs is $10.83 billion, and the total assets under management are worth $25.71 billion. This accounted for approximately 4.77% of the Ethereum market capitalization, highlighting increased allocation to large-scale capital managers. ETFs now hold more than half of all ETH issued since Ethereum changed to proof-of-stake in 2022.

This difference in the performance of Ethereum ETFs and Bitcoin ETFs indicated changing portfolio approaches. Market players seemed to favor the applications-driven network of Ethereum against the store-of-value narrative of Bitcoin.

Market Conditions Favor Ethereum Price Growth

Ethereum gained over 45% in the past 30 days, aided by rising staking levels. Exchange balances dropped to 15.28 million ETH, the lowest since November 2016, indicating movement toward long-term storage. Staked assets on the Ethereum network surpassed $150 billion for the first time.

ETF inflows on Monday alone equaled 238,000 ETH, which accounted for more than 50% of all ETH issued since the Merge. This level of accumulation suggested a substantial appetite for regulated investment products. Corporate ETH holdings also rose sharply, reaching $13 billion in value as prices climbed.

Ethereum ETFs benefited from improved macroeconomic sentiment. The probability of a U.S. rate cut in September rose to 84%, boosting demand for risk-oriented assets.

Related: Ethereum Hits Record Highs in Japan and Korea as Demand Soars

Broader Crypto Market Gains Momentum

The ETF run followed the broader rally in the altcoin, which was driven by the U.S. SEC’s decision to drop its suit against Ripple. The move has lowered legal uncertainty and boosted the purchasing of various digital assets. Altcoins with a good use case resembled the upward trend of Ethereum.

Ethereum ETFs outperformed Bitcoin ETFs on Monday, with ETH continuing to dominate in tokenized assets, holding a 58% share across all blockchains. Market watchers pointed to Ethereum’s expanding ecosystem as a primary driver of sustained demand.

The success of Ethereum-based ETFs supported the belief that blockchain-based applications had the potential to spearhead the next period of growth in digital assets. As inflows hit a new high, the market share of Ethereum looked stronger than at any point since 2021.

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