Ethereum ETF inflows hit record highs. Is ETH's spring coming?

On June 23, the cumulative net inflows of US-listed spot Ethereum ETFs exceeded $4 billion, just 11 months after their listing.

These products were launched on July 23, 2024, and after 216 US trading days, the cumulative net inflows reached $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 $4.28 billion in outflows during the same period.

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

Redemptions at Grayscale slowed during the same period, causing total fund inflows to rise sharply.

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

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

The report, which spoke to brokers who make allocations on behalf of wealth managers, highlighted three factors that drove the June surge: First, the rebound in ETH prices relative to BTC 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 portfolios 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 if retail money concentrates on low-fee instruments, there is room for broad institutional participation.