TL;DR
- U.S. spot Ethereum ETFs have equaled their record 19-day inflow streak, adding $5.38 billion and pushing holdings to nearly 5% of ETH’s supply.
- BlackRock’s ETHA remains the largest driver of this surge, gathering over 3 million ETH alone.
- The recent SEC green light for in-kind redemptions and potential staking features hints at deeper mainstream adoption ahead.
Ethereum exchange-traded funds in the U.S. are seeing relentless demand, now matching their longest inflow streak on record. After 19 straight days of net inflows, total new capital added stands at $5.38 billion. Combined, these funds hold close to 5.7 million ETH, about 4.7% of the entire circulating supply, based on the latest estimates.
BlackRock’s ETHA fund continues to lead by a wide margin, contributing over $20 million in fresh inflows this Wednesday alone. ETHA now accounts for more than 3 million ETH worth approximately $11.6 billion, giving it a major share among all U.S. spot Ethereum ETFs.
Fidelity’s FETH ranks second, although it saw net outflows this week. Smaller players like Bitwise, VanEck and Franklin Templeton also added moderate inflows during the streak. Since launching in July 2024, all U.S. Ethereum ETFs have together brought in nearly $9.7 billion, a clear sign that institutional and retail investors see value in crypto-backed regulated products.
This wave of inflows also suggests that more traditional investors are beginning to trust crypto exposure through compliant structures, rather than holding assets directly. Some analysts argue that this trend could gradually shift more ETH into long-term locked positions, tightening supply on open markets and potentially driving prices higher over time.
SEC Opens Door To In-Kind Redemptions
The SEC’s recent approval of in-kind redemptions for Bitcoin and Ethereum ETFs has further boosted sentiment. This shift lets authorized participants create or redeem shares directly with crypto instead of converting to cash, trimming costs and aligning crypto ETFs with traditional structures. Major fund managers like BlackRock and Ark Invest are already adjusting their operations to use this mechanism.
Staking Could Be Next Big Feature
On Wednesday, Nasdaq filed a request to enable staking for BlackRock’s Ethereum ETF. If regulators approve it, the fund could distribute staking rewards, adding an extra incentive for investors to hold ETH through regulated vehicles. Analysts believe the chance of approval is high under the current administration, raising hopes that Ethereum ETFs may soon combine yield with capital gains for a wider investor base seeking alternative income streams.
