Institutional interest in cryptocurrencies continues to grow, and Ethereum-based ETFs are experiencing a real surge. In the first half of July 2025, inflows into these exchange-traded funds reached record levels — exceeding US$900 million per week. This is one of the strongest results in the entire history of crypto ETFs and is especially notable against the backdrop of declining activity in Bitcoin funds.

Record Investment Volumes

The largest contribution came from BlackRock’s iShares Ethereum Trust (ETHA), the world’s biggest asset manager. On July 10 alone, more than US$300 million flowed into the fund. Over the course of the week, it attracted more than US$675 million, placing ETHA among the top 10 ETFs in the United States by weekly capital inflow — including traditional funds.

Total weekly inflows into Ethereum ETFs for the week ending July 11 exceeded US$900 million, more than triple the average weekly inflow seen in June, demonstrating rising interest in Ethereum as an investment asset.

Why Investors Are Choosing Ethereum

The main driver of this surge is the increasing perception of Ethereum as the infrastructural backbone of the future financial system. Unlike Bitcoin, often seen as “digital gold,” Ethereum serves as the foundation for smart contracts, decentralized applications (DeFi), and tokenized assets.

Institutional investors — including hedge funds and pension institutions — are recognizing Ethereum’s potential not only for price appreciation but also as a key component of the digital economy’s architecture. ETFs offer a convenient way to gain exposure to ETH without direct token custody, simplifying regulation, storage, and tax reporting.

Role of BlackRock and Other Providers

Momentum is also supported by major financial institutions such as BlackRock, Fidelity, VanEck, and Franklin Templeton. Their involvement provides liquidity and strengthens confidence in crypto ETFs due to their reputations and rigorous regulatory frameworks.

BlackRock’s ETHA, which already holds over 2 million ETH and manages more than US$5.6 billion in assets, stands out as the largest Ethereum fund in the world and one of the fastest-growing ETFs in the United States by inflow rate.

Institutional Rotation: From Bitcoin to Ethereum

Another important trend is the shift of capital within the crypto market. While some Bitcoin ETFs reported net outflows in July, Ethereum funds saw steady growth.

This rotation is driven not only by diversification but also by fundamental differences between the assets. Ethereum offers more use cases and greater potential for scalable adoption through Web3, DeFi, and tokenized securities.

Outlook and Prospects for Ethereum

There is active discussion about potential enhancements to Ethereum ETF structures, including the possible introduction of staking-enabled products. Current funds hold ETH without earning staking rewards, which limits potential investor returns.

Despite this, market expectations remain positive. Strong inflows show that Ethereum is solidifying its role as a key long-term portfolio asset in the digital-asset sector. If demand continues, Ethereum’s price may reach new highs — particularly if regulators approve more flexible, yield-generating ETF variants.

More and more investors are viewing Ethereum not merely as a speculative asset but as the foundation for future digital-economic infrastructure. And judging by current trends, this may only be the beginning.