BlackRock’s Ishares Ethereum (ETH) Trust ETF (ETHA) recorded $1.24 billion in weekly inflows from August 18-22, ranking second in all 4,400 ETFs tracked during that period.
In a post on August 29, Novadius Wealth President Nate Geraci said only Vanguard’s S&P 500 ETF outperforms Etha’s $171.1 billion weekly flows.
He also highlights the importance of Eta appearing among “heavy batters” in the weekly influx rankings, indicating the institutional desire for exposure to Ethereum.
Additionally, Bloomberg ETF analyst James Seyfert reported on August 29 that Ethereum ETF has accumulated nearly $10 billion inflows since July, showing significant momentum in its asset class.
Before this surge, Ethereum ETF recorded negative flows of $400 million per year, worth about $2.5 billion, according to data from Farside investors.
Capital turnover
Market conditions show that capital has been spinning from Bitcoin to Ethereum throughout August. Bitcoin ETF registered a $800 million outflow until August 28th, while Ethereum ETFS accumulated $4 billion inflows over the same period for every tracked by far side investors.
The inflow disparity reflects evolving institutional preferences as investors diversify cryptocurrency allocations beyond Bitcoin.
Furthermore, retail participation has accelerated in conjunction with institutional interests. Defilama data shows that Ethereum has reached a monthly spot trading volume record of $135 billion as of August 29th, surpassing the previous high of $117.6 billion since May 2021.
With companies’ Ethereum adoption accelerated significantly over the summer months, institutional adoption is not limited to exposure to ETFs.
Strategic ETH reserve data reveals that between June 1 and August 29, the company’s Ethereum Treasury Department rose from $2.3 billion to $19.1 billion.
From a token perspective, the company’s reserves expanded from 916,268 ETH to 4,438,352 ETH over the same period, accounting for about 3.7% of the total ETH supply.
Coupled with an increase institutions adding ETH, the Treasury accumulation pattern suggests the institutional perception of Ethereum as a financial asset.
Etha’s performance demonstrates integration into Ethereum’s mainstream investment flows, with Crypto products directly competing with established stocks and bond ETFs of investor capital.
