Ethereum ETFs See Record Investments

Ethereum exchange-traded funds (ETFs) generated more than $726 million in investments on Wednesday, marking the highest level in their nearly year-long trading history. This surge came as the price of Ethereum rose to its peak since January.

According to UK asset manager Farside Investors, the nine funds have collectively netted $2.3 billion over a nine-day inflow streak starting July 3. On Thursday, Ethereum was trading just below the $3,500 mark, reflecting a 23% spike over the past week.

The price gains have been influenced by Ethereum treasury firms increasing their holdings. Notably, BitMine Immersion, backed by Peter Thiel, surpassed $1 billion in Ethereum after adding $500 million in ETH to its assets. This firm aspires to control 5% of all Ethereum held or staked and has only recently launched its strategy.

Additionally, SharpLink Gaming, a gambling marketing firm turned Ethereum accumulator, purchased $225 million worth of Ethereum following a $425 million fundraising round, with Joseph Lubin, Consensys CEO and Ethereum co-founder, joining SharpLink’s board.

The recent surge of ETFs aligns with growing optimism regarding the Ethereum network’s utility, especially as the primary protocol for stablecoin transactions. Analysts predict this market will flourish with the anticipated House passage of the GENIUS Act. Analyst Noelle Acheson emphasized, “ETH stands to benefit much more from the passage of the GENIUS Act stablecoin bill than does BTC.”

Acheson also pointed out that spot Ethereum ETFs may soon be able to allocate staking rewards, enhancing their attractiveness to mainstream investors. On Thursday, Nasdaq filed for a 19b-4 rule change allowing BlackRock’s iShares Ethereum Trust (ETHA) to incorporate these features. The U.S. Securities and Exchange Commission is expected to review similar proposals from issuers in October.

Currently, spot Ethereum funds manage nearly $14 billion in assets, according to CoinGlass. Interest in these funds was previously subdued compared to the overwhelming attraction of spot Bitcoin ETFs, but the recent growth has brought them closer to parity. On Thursday, Bitcoin funds accrued $799 million in assets.