US Ethereum ETFs Celebrate First Anniversary with Record-Breaking Performance

Ethereum ETFs Mark Milestone Year with Strong Inflows

US-based spot Ethereum exchange-traded funds reached their one-year trading milestone on Wednesday, celebrating with an impressive three-week inflow streak that included some of their strongest performance days since launch.

The US Securities and Exchange Commission approved spot Ethereum ETFs to begin trading on July 23, 2024. Nine funds from major financial institutions including BlackRock, Fidelity, 21Shares, Bitwise, Franklin Templeton, VanEck, Invesco, and two Grayscale offerings entered the market simultaneously.

$8.69 Billion in Total Net Inflows Over 12 Months

During their first year of trading, these nine Ethereum ETFs accumulated approximately $8.69 billion in total net inflows and currently manage $16.57 billion in assets under management, according to CoinGlass data.

A significant portion of these inflows occurred recently, with nearly half of the total net inflows—approximately $3.9 billion—coming from an unbroken 14-day inflow streak over the last trading sessions.

Ethereum Price Performance and Market Position

Ethereum has faced challenges breaking above its all-time high of nearly $4,900 set in November 2021, while Bitcoin has experienced significant growth. ETH has traded within a wide range throughout the year, reaching highs of $4,000 in December and lows of $1,500 in April.

Currently, Ethereum trades above $3,600, showing an 8% increase over the 12-month period despite slight daily declines. The Ethereum ETFs often find themselves overshadowed by Bitcoin ETFs, which launched earlier in 2024 and have attracted nearly $54.5 billion in net inflows.

Anniversary Day Marks Seventh-Best Inflow Performance

The one-year anniversary proved significant for Ethereum ETF performance, with the funds recording their seventh-best inflow day since launch, attracting $332.2 million on Wednesday.

According to NovaDius Wealth Management president Nate Geraci, six of the ETF's top seven inflow days occurred within the past two weeks, demonstrating renewed investor interest.

The funds achieved their best-ever single-day inflow on July 16, when they collectively attracted $726.6 million in investments.

BlackRock Dominates Ethereum ETF Market Share

BlackRock's iShares Ethereum Trust ETF (ETHA) has emerged as the clear market leader, capturing the majority of net flows over the past year with $8.9 billion in inflows.

This strong performance has helped offset significant outflows from the Grayscale Ethereum Trust ETF (ETHE), which experienced nearly $4.3 billion in net outflows. The Grayscale fund, originally launched as a trust in 2017 before converting to an ETF, has seen investors exit as the fund trades at reduced discounts compared to its net asset value.

Geraci noted that among nearly 1,000 ETFs launched since Ethereum funds went live, BlackRock's ETH fund leads all of them in total inflows.

Staking Features Represent Next Growth Phase

Ethereum ETF issuers are actively pursuing the addition of staking capabilities to their funds. Staking allows investors to earn rewards that the Ethereum blockchain provides to those who lock up their ETH to help secure the network.

Industry analysts predict the SEC could approve ETFs with staking features as early as this month. The regulatory body may also act on other cryptocurrency ETFs, including those tracking cryptocurrency baskets or individual coins like Solana.

The cryptocurrency ETF space already saw its first staking-enabled fund launch earlier this month, jointly issued by REX Shares and Osprey Funds. This Solana-focused ETF stakes its holdings and passes the rewards to fund investors.

Market Outlook and Future Developments

The strong inflow streak and anniversary milestone position Ethereum ETFs favorably for continued growth. With potential staking approvals and expanding cryptocurrency ETF options, the market appears ready for significant developments.

The sustained investor interest, particularly the recent 14-day inflow streak, suggests growing confidence in Ethereum as an investment vehicle through regulated ETF structures.

As the cryptocurrency ETF landscape continues evolving, Ethereum funds appear well-positioned to capture additional market share and investor assets, especially if staking features receive regulatory approval in the coming months.

For more Crypto, Web3, Blockchain & AI news visit : www.metamoonmedia.com