Ethereum ETF inflows for 15 consecutive days… Is this a signal of institutional capital inflow?

US Spot Ethereum ETF Records 15 Consecutive Days of Inflows, Raising $837.5 Million Since May 16

These inflows began after Ethereum's Pectra upgrade. This upgrade increased daily transactions to approximately 1,000 and enhanced wallet functionality without changing addresses.

Ethereum ETF Sees $837.5 Million Inflow

These inflows represent about 25% of all net inflows since the fund's launch in May 2024. This continuous inflow marks the longest consecutive inflow period for Ether ETF since the end of 2024.

According to data from SosoValue, the Spot Ethereum ETF has now reached a cumulative inflow value of $3.33 billion, the highest to date.

BlackRock's ETHA fund leads individual inflows in the Ethereum ETF market, contributing approximately $600 million during this surge. While ETHA boasts the highest inflows, Grayscale's ETHE and ETH have a larger asset base, with AUM of $4.09 billion compared to ETHA's total.

Meanwhile, Fidelity's offering lags at $1.09 billion, with other funds remaining below $250 million. Notably, this surge coincides with a 38% increase in Ether price over the past 30 days.

Key factors include renewed institutional interest, optimism about Ethereum's long-term fundamentals, and the network's recent Pectra upgrade. Analysts remain optimistic about Ethereum's price outlook.

However, JPMorgan analysts noted that while institutional allocation is increasing, Ethereum network user activity has not significantly accelerated post-upgrade.

"Daily transactions or active addresses have not substantially increased since the recent upgrade." – JPMorgan Analyst Nicolaos Panigirtzoglou

If the current pace continues, it could exceed $1 billion next week, further emphasizing the dramatic sentiment shift following the relatively quiet start of the Ether ETF.

Bitcoin ETF Declines After Peak

While Ethereum ETF continues to gain momentum, Bitcoin ETF has not. The Spot Bitcoin ETF saw its recent inflow streak break on May 29, with $346.8 million exiting the market in a single day.

Since then, Bitcoin ETF flows have been volatile, with cumulative inflows decreasing by over $1 billion, dropping from $45.34 billion on May 28 to $44.24 billion as of Friday's trading session.

BlackRock's IBIT maintains a significant lead, managing $69 billion in assets. Fidelity's FBTC and Grayscale's GBTC hold AUM of $20.51 billion and $19.32 billion, respectively.

The market also experienced momentary confusion after an online dispute between Donald Trump and Elon Musk triggered selling pressure in cryptocurrency and stock markets.

Staking, ETF Innovation in Focus

As investor interest in Ether ETF accelerates, some analysts argue that future inflows depend on whether staking functionality will be introduced. Bloomberg's ETF analyst James Seyff recently highlighted regulatory workarounds to launch ETFs with staking capabilities.

ETF provider REX Shares has already applied for Ethereum and Solana staking ETFs, and these products could arrive in the US within weeks.

The rising demand is also reflected in Ethereum's broader adoption indicators. According to cryptocurrency online data platform Santiment, Ethereum holders now exceed 148 million.

This indicates long-term confidence in the asset. In comparison, Bitcoin has 55.39 million holders, while other popular assets like Dogecoin, XRP, and Cardano report between 4-8 million holders.

The $ETH ETF is currently showing the strongest performance, drawing attention to whether this momentum can be sustained.

Perhaps, a product that enables Staking could lead the next wave of institutional adoption.