Is the spring of Ethereum ETF inflows and record ETH about to come?

On June 23, the cumulative net inflow of funds into the spot Ethereum ETF listed in the United States exceeded $4 billion, just 11 months after its launch.

These products were launched on July 23, 2024, and after 216 trading days in the United States, the cumulative net inflow reached 3 billion dollars as of May 30.

After breaking through the $3 billion mark, the Spot Ethereum ETF has increased by $1 billion in just 15 trading days. As of the close on June 23, its lifetime net subscription amount has risen to $4.01 billion.

These 15 trading days account for 6.5% of the 231 days of trading history, but they represent 25% of all funds invested to date.

BlackRock's iShares Ethereum Trust (ETHA) drove this growth with a total inflow of $5.31 billion, while Fidelity's FETH contributed $1.65 billion, and Bitwise's ETHW increased by $346 million.

The traditional Grayscale ETHE trust (converted to an ETF upon launch) recorded an outflow of $4.28 billion during the same period.

Daily capital flow data shows this change: on June 11 alone, ETHA absorbed over $160 million in funds, while during the period from May 30 to June 23, this trust had five trading days with capital inflows exceeding $100 million.

During the same period, the redemption amount of Grayscale has slowed down, resulting in a significant increase in total capital inflow.

ETHA and FETH charge a management fee of 0.25%, which is in line with the industry median and lower than the 2.5% rate of ETHE.

According to a report by CoinShares, lower costs combined with established primary market relationships continue to direct inflows towards BlackRock and Fidelity.

The report talks with brokers who configure on behalf of wealth managers, highlighting three factors that drove the surge in June: first, the rebound of ETH price relative to BTC, coinciding with the IRS providing clearer guidance on staking income in grantor trust ETFs.

Finally, large-scale rebalancing orders from multi-asset allocators have also driven a surge in capital inflow, viewing Ethereum as an extension of their portfolios rather than an independent speculative bet.

The next quarterly 13F filing deadline in mid-July will reveal whether professional managers have joined the spring influx of funds.

As of March 31, these companies accounted for less than 33% of the assets in Spot Ether ETFs, indicating that there is still room for broad institutional participation even as retail funds concentrate on low-fee instruments.