After early concerns that ether ETFs might become “zombie funds,” the outlook has brightened. Funds tracking spot ether have now recorded inflows for six straight weeks and posted positive inflows in eight of the last nine weeks, according to data from SoSoValue.
Institutional investors are recalibrating their approach toward ether, driven by recent regulatory progress in the U.S. around stablecoins, many of which operate on the Ethereum blockchain. The successful IPO of Circle, the issuer of the second-largest stablecoin, and new leadership at the Ethereum Foundation have also boosted confidence.
Ben Kurland, CEO of crypto research platform DYOR, explained that “smart money” is positioning ahead of key utility unlocks, such as access to staking, options listings, and anticipated inflows from retirement platforms, rather than chasing price momentum.
Comparison with Bitcoin ETFs
Since their launch in July 2024, ether ETFs have lagged bitcoin ETFs in both inflows and attention. They have accumulated approximately $3.9 billion in net inflows compared to bitcoin ETFs’ $36 billion in their first year.
Chris Rhine, head of liquid active strategies at Galaxy Digital, highlighted that increasing acceptance of crypto on Wall Street, especially for payments and remittances, is drawing investors to ETH ETFs.
Arbitrageurs have been attracted by the higher CME basis on ether compared to bitcoin. This basis—the price difference between ether futures and spot prices—provides opportunities to profit by going long on ether ETFs while shorting futures, supporting the inflows.
Ether’s Price Performance Remains Challenged
Despite the inflows, ether’s price has struggled, showing a negative return for the month and flat performance over the past 30 days. It’s down roughly 25% for the year, affected by uncertainty over Ethereum’s value proposition, weaker revenue since its last major upgrade, and competition from rival platforms like Solana. Geopolitical volatility has further contributed to market pressures.
In March, Standard Chartered cut its ether price target by more than half but maintained that a turnaround remains possible within the year.
Kurland noted that following last week’s surge, inflows have moderated but remain net positive, signaling conviction rather than hype. “The market looks like a heart monitor, but the buyers are treating it like a long-term infrastructure bet,” he said.
What The Author Thinks
The recent renewed interest in ether ETFs reflects a maturing institutional perspective that values Ethereum’s potential beyond short-term price swings. While the current market is volatile and competitive, the focus on staking, regulatory clarity, and broader utility suggests a foundational belief in Ethereum’s long-term infrastructure role. Investors should approach with patience, recognizing that these inflows represent strategic positioning rather than speculative frenzy.
Featured image credit: Stas_kamensk via GoodFon
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