Ethereum Price Surges Past $4,000 on ETF Inflows
Ethereum Breaks $4,000 Barrier
Ethereum (ETH) surpassed $4,000 this morning, reaching its highest price since December 2024, according to TradingView data. This surge is largely attributed to significant institutional inflows into US-listed spot Ethereum ETFs.
The second-largest cryptocurrency has increased by over 53% this month and currently trades about 18% below its all-time high of $4,878, recorded in November. Year-to-date, Ethereum is up 20%.
Institutional Interest Drives Growth
US-listed spot Ethereum ETFs have seen positive momentum over the last three trading days. On Thursday alone, these funds recorded approximately $222 million in net inflows, according to Farside Investors data.
BlackRock’s iShares Ethereum Trust (ETHA) is a primary driver, managing over $11 billion in ETH as of August 7. ETHA reached the $10 billion milestone faster than most ETFs and is currently among the top five funds for capital inflows over the past week and month.
Corporate adoption is also accelerating. Major players continue to increase their Ethereum holdings, with Tom Lee's BitMine Immersion leading with over $3 billion in ETH, followed by SharpLink Gaming with around $2 billion.
Staked Ethereum ETFs: The Next Frontier?
A key development the Ethereum community is watching is the potential SEC approval of staked Ethereum ETFs. This would differentiate these funds from Bitcoin ETFs and allow investors to earn rewards from their holdings.
Initially, ETF issuers aimed to include staking in their spot Ethereum ETF filings, but previous SEC stances led them to remove it. Recent SEC guidance, under pro-innovation Chair Paul Atkins, suggests a shift. Crypto staking is now generally not considered a security if it meets certain conditions related to protocol-level participation in proof-of-stake networks.
Many believe the SEC will eventually allow Ethereum ETFs to incorporate staking. BlackRock's recent filing to add staking to its ETHA fund further supports this expectation.
ETF Store President Nate Geraci anticipates that the addition of staking is likely and could follow the recent approval for in-kind redemption for spot Bitcoin and Ethereum ETFs.