TL;DR
- Ethereum ETFs have experienced unprecedented institutional inflows, exceeding $2 billion over just three days, with BlackRock and Fidelity leading the gains.
- Ethereum’s price has surged close to its all-time high near $4,900, fueled by growing adoption, positive regulatory signals, upcoming network upgrades, and broader institutional participation.
- Analysts now foresee even higher year-end targets, projecting Ethereum could continue outperforming Bitcoin in both performance and institutional demand, attracting more global investors.
US spot Ethereum exchange-traded funds attracted $729.1 million in net inflows on Wednesday, marking the second-largest single-day gain since these products launched. BlackRock’s ETHA led with $500.9 million, followed by Fidelity’s FETH at $154.7 million. Four other Ethereum ETFs also recorded positive flows, contributing to more than $2 billion flowing into Ethereum products over the past three days, a figure nearly seven times the inflows seen in Bitcoin ETFs during the same period.
The recent surge reflects growing institutional interest, as ETFs provide a regulated and simplified way for asset managers, pension funds, and corporate treasuries to gain exposure to Ethereum without dealing with custody complexities. On Wednesday alone, ETH ETF inflows surpassed Bitcoin ETFs by more than eightfold, highlighting Ethereum’s appeal among institutional investors and long-term strategic portfolios, while reinforcing confidence in digital assets.
Analyst Optimism Drives Higher Price Targets
Standard Chartered’s Geoff Kendrick raised his year-end Ethereum forecast to $7,500 from $4,000, citing strong ETF inflows, favorable regulation, and upcoming network improvements. He also updated his 2028 target to $25,000 from $7,500, suggesting Ethereum’s potential to continue outperforming Bitcoin, with the ETH/BTC ratio expected to rise to 0.05. Kendrick highlighted that ether treasury holdings and spot ETFs have accumulated 3.8% of all ETH in circulation since early June, a pace double that of Bitcoin accumulation, reflecting robust institutional confidence.
Ethereum’s price has responded, rising 2% in the past 24 hours to $4,775, within 4% of its November 2021 all-time high near $4,900. The rally triggered $127.4 million in short liquidations over the same period. Network developments, including plans to increase Layer 1 throughput by tenfold, are expected to support higher-value transactions and Layer 2 growth, further strengthening institutional confidence and broader market participation globally.
The US GENIUS Act, passed in July, has also benefited Ethereum, promoting mainstream stablecoin adoption, most of which are issued on the Ethereum network. Analysts note that stablecoins account for 40% of blockchain fees, underscoring Ethereum’s continued dominance as a platform for both decentralized finance and enterprise blockchain activity, attracting diversified investment flows.
