U.S. Spot Ethereum ETFs Top $4B Inflows in First Year 

U.S. spot Ethereum ETFs pulled over $4 billion in net inflows since launching in July 2024. BlackRock’s ETHA led with $5.31 billion in gross inflows, even as Grayscale’s ETHE shed $4.28 billion. Fidelity’s FETH added $1.65 billion and Bitwise’s ETHW gained $346 million.

ETH ETF Market Trends and Bitcoin Comparison

U.S. spot Ethereum ETFs hit $3 billion by May 30, then packed in another $1 billion over just 15 trading days. That rapid uptick represents 25% of total inflows in 6.5% of 231 trading sessions.

But how does that compare to Bitcoin ETFs? Spot BTC ETFs amassed $34.7 billion in the same period and $47.3 billion in total by June 2025. Ethereum is clearly following a similar trajectory, though with a smaller market cap (ETH is ~$290 billion vs BTC’s >$2 trillion valuation).

Among Ethereum ETF leaders:

• BlackRock’s ETHA holds a 31.8% market share.
  
• Fidelity’s FETH commands 18%.
  
• Grayscale’s ETH slid to 15.5% after a $4.3 billion outflow tied to its fund conversion.

Over 11 months, these funds recorded roughly $89 billion in trading volume, averaging $840 million a day. Some say Ethereum ETF growth defied expectations:

Spot eth ETFs just surpassed $4bil in cumulative inflows since launch… *Includes* $4.3bil outflows from ETHE unlock. Seems pretty successful to me. I remember when “pundits” thought top end for spot *btc* ETFs in yr 1 would be $5bil. People always moving goalposts,

Nate Geraci commented on X.

Still, there have been pullbacks: U.S. spot Ethereum ETFs faced their largest outflow since mid‑May just days ago, coinciding with ETH prices dipping below $2,400.

User Impact: ETH ETF Use Cases 

Spot Ethereum ETFs simplify crypto investing. Investors can buy Ethereum directly from brokerage accounts – no wallets or private keys required. This ease appeals strongly to retail traders and traditional institutions. With no technical hurdles, these funds provide a secure gateway to cryptocurrency exposure, especially attractive to newcomers and seasoned investors.

Despite their popularity, U.S. Ethereum ETFs don't yet support staking due to regulatory limits from the SEC. However, European providers already offer staking-enabled crypto exchange-traded products (ETPs). Meanwhile, American exchanges are actively pushing forward; notably, Cboe BZX filed a rule change proposal with the SEC to allow staking within ETFs. If approved, this would unlock annual yields around 2-3% inside ETFs, boosting their appeal.

Top ETF providers, including BlackRock and Fidelity, contribute significantly to liquidity and price stability. They leverage extensive trading networks, offering tighter spreads and deeper markets. Better liquidity translates to lower transaction costs, benefiting all market participants, from small retail traders to large-scale institutions.

Why should Web3 enthusiasts care? Simple: ETH ETFs offer mainstream legitimacy and seamless access to crypto markets.

What's next? ETFs drive price and off-chain demand, but since they bypass direct network usage, they don’t directly generate transaction fees. If higher prices spur more on-chain activity – more trades, more DeFi interactions – fee burns could climb to offset staking issuance again. In that scenario, Ethereum’s “ultrasound money” model holds: burn rates rise with usage to match or exceed issuance. But absent a sustained uptick in on-chain volume, staking yields will continue to outpace burns, leaving net supply slightly inflationary.