The Spot Ethereum ETF has drawn more than $4 billion in net inflows over the two-week winning streak that closes Tuesday.
This implementation brings total assets to $19.85 billion per sosovalue across all eight US funds. The streak began on July 3rd and is still unbroken, with Ethereum far ahead of proportional supply absorption.
BlackRock’s ETHA product led the Surge, winning $426.2 million on Tuesday and managing $9.26 billion at AUM. The pace of inflow follows an early one-day record of $726.7 million recorded on July 16th. Currently, Ethereum ETF assets account for more than 4% of the total distribution supply of assets, achieved in just under three weeks of live trading.
By comparison, Bitcoin ETF saw a $67.9 million outflow on the same day, continuing to reverse the two-week flow between the two assets. For each coin share, ETH products raised $990 million for the week ending July 14th. This represents approximately 20% of existing assets. That relative growth exceeded Bitcoin’s $2.7 billion intake, accounting for 9.8% of ETF based.
Bitwise CIO Matt Hougan estimates that demand from the Ethereum ETF and institutional balance sheet will reach $2 billion from next year, equivalent to more than 5.3 million ETH. With post-competitive issuance forecast at just 800,000 ETH per year, Hougan explains the potential imbalance of a 7-1 imbalance between buyers and new coins available. ETH’s net inflation remains relatively flat, with shifts coming in as staking and long-term custody constrain secondary market supply.
The derivatives market appears to be adjusting in the same direction. At Deribit, the $4,000 and $6,000 call options totaled over $931 million in open interest. Data also shows that the December 26-25th $1,000 command commands ranked fifth in the ETH strike, up 60% in July with $120 million in public interest.
At medium-term market premiums, the price of the contract is about 15% likely to exceed $10,000 by Christmas, and the ETF stream has already absorbed the six-month issue, so it’s unbelievable but unbelievable.
Ethereum has recorded a profit of around 180% twice since 2020. The latest stretches were run from April to October 2021, so the 15% chances that have been engraved on the market are unprecedented.
With financing staking, the order to simpler Federal Reserve policies, and the lucrative SEC dominance on pending paid combustion of EIP-7702s, each can add incremental fuel to its trajectory.
BlackRock’s lead in Ethereum ETF assets also reflects the grip of Bitcoin ETFs through IBIT, which continues to dominate that segment. Etha alone holds more than half of all Ethereum ETF assets, and raises questions about provider concentration, especially when staking approval is granted.
At present, the SEC has not officially ruled whether funded ETH staking will be permitted, but the indication is promising, which affects institutional demand for yields.
The flow remains substantial, but there is a risk involved in delays in regulations and tightening the macroeconomics. According to fund managers, supply and demand for ETFs is currently a basic case, but broader risk sentiments could still derail short-term momentum. For now, the derivative desk is above the price of the next leg.
For now, both the ETF flow and option placement are tailored to the same upward trajectory, but $10,000 is possible, not a possibility.
