Ethereum ETFs Break Records with a $727M Increase in Inflows in a Single Day

According to statistics from SoSoValue, spot Ethereum ETFs saw a record-breaking net inflow of $726.74 million on July 16.

In the brief but quickly expanding history of the category, this was the greatest single-day influx, bringing the total cumulative net inflows to $6.48 billion.

It marks a sea change for Ether ETFs, which at first caused investor hesitancy after being approved last year.

With an incredible $499.25 million in net inflows in a single day, BlackRock’s ETHA took the lead and now has $7.11 billion in total. With a market share of 1.90% of all Ethereum, the ETF currently has $7.73 billion in net assets.

Despite the residual effects of early redemptions, Grayscale’s ETHE added $33.04m, while Fidelity’s FETH followed with $113.31m in inflows.

Ethereum Tops $3,200, Outpaces Bitcoin and Solana in Daily Gains

The spike occurred after Ethereum surpassed the crucial $3,200 mark, increasing by over 6.8% over the day to hover around $3,347. It exceeded both Solana and Bitcoin, indicating an increase in institutional interest in the asset. The total value traded across ETH spot ETFs hit $2.59 billion, and daily volumes skyrocketed.

Additionally, open interest in ETH futures has increased by 60% since late June to a new high of $45 billion. Increased institutional positioning and elevated expectations of additional price momentum are indicated by this spike in derivatives activity.

ETH Gains Attributed to Staking Yields, Deflation, and Long-Term Utility

According to Jamie Elkaleh, CMO of Bitget Wallet, Ethereum’s present velocity suggests more than just short-term bullishness. Citing deflationary supply mechanics following EIP-1559 and staking returns of 4% to 6%, he stated, “Ethereum is emerging as the yield-generating infrastructure play.”

“BlackRock has a strategic position in what many consider to be the foundation of future onchain finance, so its accumulation of ETH is not just about price upside,” he continued.

These days, ETH ETFs are viewed as a link between traditional finance and crypto-native tactics. For example, many people consider BlackRock’s holdings to be a long-term investment in Ethereum’s expanding role in enabling Web3 infrastructure, NFTs, and decentralized finance.

Investor Confidence Returns as Redemption Pressure Fades

Given that many ETFs saw outflows in their initial months, primarily as a result of Grayscale trust redemptions, these record inflows are particularly noteworthy. Given the decline in redemption-driven selling, the July reversal points to a resurgence of investor confidence.

There are still risks in spite of the optimistic story. The market is still plagued by regulatory uncertainty on whether ETH is a security. Ethereum’s hegemony may be threatened by competition from high-speed substitutes like Solana and Layer 2 scaling solutions.

Ethereum’s dual identity as the foundation of onchain innovation and a yield-bearing financial instrument, however, is what makes it so appealing.

 

 

 

 

 

 

 

 

 

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