Spot Ethereum ETFs See Continued Inflows Amid Growing Institutional Interest and Supply Constraints

Key Points

1. Spot Ethereum ETFs accumulated over $4 billion in net inflows from July 3 to July 22, with record daily inflows of $726.74 million on July 16 and $602.02 million on July 17.

2. Institutional demand for Ethereum is outpacing supply, with projections suggesting potential inflows of $20 billion worth of ETH in the next year, far exceeding the anticipated new supply issuance of 0.8 million ETH.

3. Exchange outflows of 76,987 ETH (approximately $285 million) signal accumulation and reduced market supply, reinforcing the narrative of growing institutional interest.

4. Spot Bitcoin ETFs recorded a net outflow of $67.93 million on the same day, with Bitwise’s BITB and Ark’s ARKB seeing the largest withdrawals, while Grayscale’s GBTC had a modest inflow of $7.51 million.

5. The contrasting flows between Ethereum and Bitcoin ETFs highlight a shift in investor strategies, with Ethereum gaining recognition for its diversified exposure to blockchain innovation beyond Bitcoin’s store-of-value narrative.