Ethereum exchange-traded funds (ETFs) in the United States recorded a historic influx of $726.6 million on Wednesday, marking the largest single-day net inflow for spot ETH ETFs to date. This significant inflow occurred as altcoins experienced a sharp rally, with Ethereum (ETH) itself climbing 8.6% in the past 24 hours to trade near $3,346. This surge in investment underscores the growing institutional interest in Ethereum, as other major players like Fidelity and Grayscale also reported significant capital entries.
BlackRock’s iShares Ethereum Trust (ETHA) led the charge with a record $499 million in daily inflows, while Fidelity’s Ethereum Fund (FETH) followed with $113 million. Collectively, US spot Ether ETFs now hold more than 5 million ETH, which accounts for over 4% of the cryptocurrency’s circulating supply. These funds bought roughly 107 times more ETH than was newly issued by the network on Wednesday alone, highlighting the robust demand for the cryptocurrency.
Ethereum’s momentum coincides with the broader altcoin resurgence. XRP is up 9.5%, BNB gained 3.04%, Solana rose 5.1%, Dogecoin increased 6.9%, Tron advanced 3.7%, and Cardano moved up 7.5%. In contrast, Bitcoin posted a modest 0.8% drop. Analyst Matthew Hyland pointed out that Bitcoin dominance, which currently stands at 61%, may have peaked. He suggested that if it falls to 45%, altcoins could see even stronger gains.
Corporate demand for Ethereum has also been accelerating. Treasuries now hold over $5.33 billion worth of ETH, or approximately 1.33% of the circulating supply. Just last month, corporations added over $1.6 billion in ETH. Among the largest buyers is SharpLink Gaming, which accumulated $343 million worth of ETH in just the past eight days, including a $68 million purchase in the last 24 hours. World Liberty Financial, a firm backed by US President Donald Trump, also disclosed a new $5 million ETH purchase at $3,266. Additionally, a firm chaired by Fundstrat’s Tom Lee, now holds over $500 million in ETH.
Ethereum ETFs experienced a significant milestone on Wednesday, with a record-breaking $726.74 million in daily net inflows. This surge in investment coincided with a notable 8.1% increase in the price of ETH, pushing it above $3,560. The inflows were predominantly driven by BlackRock’s ETHA, which alone attracted nearly $500 million. This substantial investment underscores the growing institutional interest in Ethereum, as other major players like Fidelity and Grayscale also reported significant capital entries. The total corporate holdings of ETH have now swelled to 1.6 million, valued at approximately $5.3 billion. This accumulation rate is 36 times faster than the new issuance of ETH, highlighting the robust demand for the cryptocurrency.
The surge in ETH prices has been accompanied by a broader altcoin rally, with Ethereum leading the charge. The cryptocurrency has seen a 40% increase in July, fueled by the record ETF inflows. This price surge has sparked renewed enthusiasm among investors, with social media discussions reaching their highest levels since May 2024. The bullish sentiment is palpable, with many investors setting their sights on the $4,000 mark. The growing interest in Ethereum is also reflected in the network’s expanding user base, with a record 152.03 million non-empty wallets, indicating a strong fundamental health.
The recent price movements have also been influenced by the performance of Bitcoin, which briefly retreated before bouncing back. This has led to a steady rise in the ETH/BTC ratio, suggesting that Ethereum is becoming an increasingly attractive option for liquidity. Analysts have noted that the current market dynamics favor Ethereum, with some predicting that the asset could reach new all-time highs if Bitcoin’s dominance decreases. The combination of institutional accumulation and renewed investor enthusiasm has created a favorable environment for Ethereum, positioning it as a key player in the ongoing altcoin season.
