Ethereum may not have reclaimed its glory days yet, ranging around 40% below its 2021 all-time high, but ETH is back in the spotlight and its ETFs have been on fire since the second half of May.
The U.S. spot Ethereum ETFs just hit a new record with 18 straight days of inflows, topping out with $240 million in a single day this past Wednesday. That’s more than just a solid day as it’s enough to outperform Bitcoin ETFs, which pulled in “just” $165 million that same day.
And since the beginning of June, the total ETH ETF inflows have already reached over $700 million. That’s a lot of institutional and big wallet money going into Ethereum, but why?
So, why the Surge?
1. ETH’s Reputation Is Changing
Institutional investors are shifting their view and no longer treat Ethereum like a high-risk altcoin. Instead, it’s becoming more viewed as the infrastructure layer of the next-gen financial system.
2. The Pectra Upgrade
The recent Pectra upgrade didn’t make as much headlines as the Merge, but it brought meaningful and impactful changes to the network. The most notable is the improvement of Ethereum’s scalability and data-handling capabilities which is boosting the investors confidence in the project.
3. ETH Price Bounce
Since hitting a two-year low recently, in April this year, ETH has rebounded nearly 100% and is now ranging around $2,700. Even with the usual and short-term market noise, this type of movement gets noticed and highlights a positive trend for the asset (especially with that much ETF inflows).
And at the same time, Bitcoin’s momentum is not at its peak. The BTC ETFs have seen over $600 million in outflows so far this month. So the narrative might be shifting, at least for now.
What does that Mean?
Ethereum is attracting capital (finally) but also confidence. For the first time in a while, we’re seeing big money treat ETH as a long-term investment and not as a bet.
And while Ether’s value didn’t significantly pump yet to reach and pass its former ATH (as the crypto community expects it for a looooong time now), the inflow patterns show that Ethereum could now be in a good position to do so.
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