The US Spot Ethereum ETF (Exchange-Traded Funds) reached a milestone, recording a net inflow of $1.019 billion on August 11th.
BlackRock’s Ishares Ethereum Trust (ETHA) leads the charges, marking the largest day’s haul since its launch.
Ethereum ETF has a Bitcoin moment with a billion dollar influx
Sosovalue data shows BlackRock’s ETHA recorded a net inflow of $640 million on Monday, but Fidelity’s products also hit new highs.
By comparison, the Spot Bitcoin ETF brought in $178 million on the same day, while BlackRock’s IBIT donated $138 million.
This data marks the first daily influx beyond the Ethereum billion dollar mark, setting fresh records for both iShares and the loyal Ethereum ETF.
According to Nate Geraci, ETF Store president, Surge reflects a fundamental shift in understanding of Tradfi (Tradfi) of Ethereum’s value proposition.
“It feels like the Spot ETH ETF is being seriously underrated just because Tradfi investors didn’t understand ETH… BTC had a clean story about ‘digital gold’.
The influx broke Ethereum prices above $4,300, 13% below the all-time high of $4,868 recorded on November 8, 2021.
Binance Eth’s open interest in futures has skyrocketed to $10 billion, an increase of 46% in the past month, but short positions increased 500% year-on-year (Yoy).
Meanwhile, 30% of the ETH supply is staked, and replacement reservations hover near record lows. According to analysts, this supply dynamic can amplify volatility.
According to famous KOL Crypto Patel, price action over $4,400 can cause major short apertures, with whale accumulation and ETF-driven demand present as key catalysts.
“Spot + Derivatives + Supply Crunch = Parabolic Risk,” writes Patel.
Institutional appetites are also developing against the backdrop of changes in the legacy ETF industry.
The story appears to be mature for Ethereum. It appears that Wall Street is a seemingly obsessed and corporate players are taking part in the fold.
If a simple digital gold pitch accelerated the success of Bitcoin ETFs, it has exhausted the complexity of programmable blockchain power distributed finance (DEFI), tokenization, and Ethereum as a Web3 application, which traditional investors would take time to digest.
However, Geraci’s comments suggest that this learning curve is currently rewarding, with a billion dollar inflow dates expanding institutional convictions.
It also positions Ethereum ETF as a potential growth engine for a wider market.
The Post Ethereum ETF defeated $1 billion as Wall Street moved out of curiosity to a conviction.
