U.S. Spot Ether ETFs Mark One-Year Anniversary with Strong Inflows and $16.6B AUM

Ether ETFs Celebrate a Milestone Year

U.S. spot Ether ETFs have officially marked their one-year trading anniversary, celebrating with a sustained three-week streak of inflows and growing investor interest. Approved by the SEC on July 23, 2024, nine Ethereum-focused funds launched from major issuers including BlackRock, Fidelity, 21Shares, Bitwise, VanEck, Franklin Templeton, Invesco, and two from Grayscale.

$8.7 Billion in Inflows and Growing

Over the past 12 months, these ETFs have attracted $8.69 billion in net inflows, with total assets under management (AUM) now exceeding $16.57 billion, according to CoinGlass.

The bullish momentum continues with $3.9 billion in new inflows over the past 14 trading sessions, highlighting growing investor confidence in Ether as a long-term asset.

Fun Fact: July 23 marked the seventh-highest single-day inflow for the Ether ETFs, with $332.2 million in net flows.

Ether ETFs have seen some of their largest single days of inflows in the past month. Source: CoinGlass

BlackRock’s ETHA Leads the Pack

BlackRock’s iShares Ethereum Trust (ETHA) has been the standout performer among all spot Ether ETFs, pulling in approximately $8.9 billion in net inflows—a staggering number that offsets the $4.3 billion in outflows from the Grayscale Ethereum Trust (ETHE), which converted from a trust into an ETF after years of trading at a discount.

“Nearly 1,000 ETFs have launched since Ether ETFs went live—and BlackRock’s leads all of them in inflows,” said Nate Geraci, President of NovaDius Wealth Management.

Ether Still Trails Bitcoin ETFs in Popularity

Despite their recent surge, Ether ETFs remain overshadowed by their Bitcoin counterparts, which launched earlier in 2024 and have already taken in over $54.5 billion in net inflows.

While ETH is currently trading around $3,637, it's still well below its November 2021 all-time high of nearly $4,900. Over the past year, Ether has gained just over 8%, per CoinGecko, navigating volatility between $1,500 in April and $4,000 in December.

Source: Nate Geraci

Staking Could Be the Next Frontier

As Ether ETFs mature, fund issuers are now lobbying the SEC for permission to add staking features—allowing them to pass blockchain rewards to investors who help secure the Ethereum network.

The first ETF offering staking rewards launched this month, jointly issued by REX Shares and Osprey Funds, holding and staking Solana (SOL) on behalf of investors.

Analysts suggest the SEC could greenlight Ether staking ETFs as early as this month, with other innovations like multi-asset crypto baskets and Solana ETFs also under regulatory consideration.

Conclusion

One year after their historic debut, U.S. spot Ether ETFs are gaining traction, with BlackRock’s ETHA leading the way and investor appetite continuing to grow. With staking functionality potentially on the horizon, the next phase of Ethereum-based ETFs may offer even more appeal to institutional and retail investors alike.

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