US spot Ether exchange-traded funds (ETFs) pulled in $729.1 million in net inflows on Wednesday, their second-largest daily haul since launching earlier this year, according to SoSoValue data.
Key Takeaways:
US spot Ethereum ETFs drew $729.1M on Wednesday, their second-largest daily inflow since launch. Ethereum ETFs have pulled $2.2B over three days, nearly seven times Bitcoin ETF inflows. ETH’s price hit $4,775, up 60% in a month, as institutional demand tightens supply.BlackRock’s ETHA led the day with $500.9 million in inflows, followed by Fidelity’s FETH with $154.7 million.
Four other Ether ETFs also saw positive flows, capping a three-day run that began with Monday’s record $1.02 billion inflow and continued with $523.9 million on Tuesday.
Ethereum ETFs Pull $2.2B in Three Days, Outpacing Bitcoin Sevenfold
Ethereum’s momentum is dwarfing Bitcoin’s. Data shows ETH ETFs attracted $704 million on Wednesday compared to just $86.7 million for Bitcoin funds.
Over the past three days, Ethereum products have taken in $2.2 billion, nearly seven times the $330.9 million added to Bitcoin ETFs.
The surge has pushed ETH’s price to $4,775 as of early Thursday, within 4% of its November 2021 all-time high near $4,900, per CoinGecko.
The token is up more than 60% over the past month. The rally has punished bearish traders, with $127.4 million in short positions liquidated over 24 hours, according to CoinGlass.
Institutional demand is contributing to a growing supply squeeze. Monthly Ethereum ETF inflows have reached $2.3 billion, equivalent to 500,000 ETH, while only 450,000 ETH has been issued since the September 2022 merge upgrade.
Crypto treasury firms are also stepping up purchases. BitMine Immersion, the world’s largest corporate holder of Ethereum, disclosed plans to increase its fundraising target by $20 billion, to $24.5 billion in total, for further ETH acquisitions. The move marks a sharp expansion from its previous $4.5 billion stock offering.
Buterin Warns Against Risks Behind ETH Treasury Boom
While ETH’s latest run has been bolstered by institutional inflows and corporate treasuries holding Ether, Buterin has voiced caution over the trend.
In a recent interview, he warned that excessive leverage within ETH treasuries could pose long-term risks.
“If you woke me up three years from now and told me that treasuries led to the downfall of ETH… my guess would basically be that somehow they turned it into an overleveraged game,” he said.
Meanwhile, Bitcoin advocate Samson Mow has suggested that Ethereum’s latest rally could be setting up a reversal, with capital eventually flowing back into Bitcoin.
Mow, CEO of Bitcoin adoption firm Jan3, claimed that many long-term ETH holders, particularly early insiders from the ICO era, already own significant amounts of Bitcoin.
According to him, these investors are rotating BTC into ETH to “pump it on new narratives” such as the emergence of Ethereum treasury companies.
Once prices rise sufficiently, he predicts they will sell their ETH, leaving “new generational bagholders,” and move the profits back into Bitcoin. “No one wants ETH in the long run,” he said.
He also warned that it could be “challenging” for Ether to surpass its previous all-time high, arguing that the closer the market gets to that psychological level, the stronger the incentive to sell, what he called the “Bagholder’s Dilemma.”
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