Spot Ethereum ETFs Draw $2.3B in Inflows, Outpacing Issuance

Ethereum ETFs Drive Record Inflows as Network Supply Growth Slows and Price Nears All-Time High

  • Spot Ethereum ETFs in the U.S. attracted $2.3 billion, or 500,000 ETH, this month.
  • Since Ethereum’s 2022 “merge”, only 450,000 ETH have been issued by the network.
  • Standard Chartered reports ETFs account for a larger share of demand than company treasuries.
  • Ethereum traded near $4,740, approaching its previous all-time high from 2021.
  • Stablecoins and new legislation could increase Ethereum network activity and fees.

Spot Ethereum exchange-traded funds (ETFs) have taken in $2.3 billion in the United States so far this month. The inflows represent about 500,000 ETH, as investor demand pushes Ethereum’s price near new highs.

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Figures from data providers CoinGlass and Ultrasound Money show the network has issued 450,000 ETH since Ethereum’s “merge” in September 2022, a major network upgrade that shifted its system from mining to staking. On Monday, U.S. spot Ethereum ETFs recorded their highest single-day inflow, with investors putting in $1 billion across nine funds.

Standard Chartered analysts note that while company treasuries such as BitMine Immersion Technologies and SharpLink Gaming have recently started acquiring large amounts of ETH, ETFs still dominate recent market demand. They estimate treasury purchases at 2.3 million ETH since June, or 1.9% of all Ethereum in circulation, compared to the 3.8% held by ETFs over the same time period.

The analysts added, “Based on publicly announced plans by the treasury companies, we think their ETH buying is likely to continue, and we see potential for Ethereum treasury companies to increase their holdings to 10% of all circulating ETH.”

At the time of reporting, ETH traded around $4,740, according to CoinGecko, up 5% from the previous day. Although it surpassed $4,000 in December, Ethereum still remains just below its all-time high near $4,900 set in 2021.

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Ethereum’s supply structure changed with the 2022 transition to staking, where users help validate transactions in exchange for new ETH rather than energy-intensive mining. ETH’s supply is not capped like Bitcoin’s, but annual increases are theoretically limited to 1.5% if every Ethereum user staked their holdings. In reality, total supply has increased by only 0.13% since the merge. Roughly 683,000 ETH, worth about $1.8 billion at current prices, are burned each year because of user transaction fees, removing them from circulation.

Recent passage of stablecoin legislation may lead to a rise in dollar-pegged cryptocurrencies on Ethereum as more traditional financial firms launch new products. Currently, stablecoins generate 40% of all blockchain fees, and Ethereum supports more than half the total stablecoin market. According to Standard Chartered, growth in the stablecoin sector could directly impact transaction fees and overall network activity.

Prediction markets currently give Ethereum an 87% chance of surpassing $5,000 in 2025, according to Myriad Markets.

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