Ethereum ETF’s first anniversary listing: Institutional frenzy hits new highs

Author: Prathik Desai Source: thetokendispatch Translation: Shan Oppa, Bitchain Vision

Three months ago, even the most determined supporters of Ethereum may not have imagined that the U.S. Ethereum Trading Fund (ETF) is about to celebrate its first anniversary.

However, now is the highlight of Ethereum ETF.They have been through a full year since they were first traded on July 23, 2024.

In June 2025, Ethereum ETFs ushered in their best-performing month to date, with net capital inflows of more than $3.5 billion, a 70% increase from its previous high ($2.08 billion) in December 2024.And July’s performance is expected to surpass June, with inflows exceeding $3 billion so far.The past two weeks ended July 18 have set a record of best weekly net inflows.More notably, the Ethereum ETF has not seen any net outflows in the past 10 consecutive weeks, the first time in its 52-week history.

The “Hockey Stick” growth trend shown in the chart below tells this extraordinary growth trajectory.

When U.S. regulators approved the Ethereum ETF in May 2024 and opened trading on July 23, the market response was pretty bland.After all, Bitcoin stole the limelight from ETFs as early as the beginning of the year.The listing of Ethereum ETFs has not triggered market fanaticism, and the price fluctuates little, and the attention has also weakened.In the first few months, large-scale inflows of funds did not occur.

In fact, many early trading weeks even showed a net outflow of funds.

In the first 39 weeks, Ethereum ETF achieved net inflows in just 15 weeks; while in the past 14 weeks, net inflows were achieved in 13 weeks, and market sentiment changed significantly within three months.

As of July 21, 2025, the total assets under management (AUM) of all Ethereum ETFs in the U.S. market exceeded US$19 billion, twice the approximately US$9.6 billion two months ago.

Moreover, strong demand for ETH is not only reflected in ETFs.Institutional interest in Ethereum is rapidly heating up through the “Ethereum vault”.

On June 2, SharpLink Gaming became the first US listed company to announce the inclusion of Ethereum in its corporate vault strategy.While the entire crypto world is tracking public companies adding bitcoin to their balance sheets, Ethereum co-founder Joe Lubin brought Ethereum into a financial feast.

Lubin currently serves as chairman of the board of directors of SharpLink Gaming and leads the company’s $425 million Ethereum vault strategy.

Since its vault program started, the company has become the world’s largest listed company with 360,807 ETHs, worth more than $1.3 billion at current prices.The company also raised an additional US$413 million and received a total of 567 ETH rewards through pledging ETH.

Further, in a supplementary prospectus filed with the SEC, SharpLink applied to increase the amount of common stock that is issued from the initial $1 billion to $5 billion.

At the same time, it also faces challenges from a new competitor – BitMine Immersion, a company that originally focused on Bitcoin mining and now also focuses on Ethereum, holding more than 300,000 ETH, valued at its current price of more than $1 billion.”We are steadily moving towards our goal: to acquire and pledge 5% of the total Ethereum supply,” said Tom Lee, chairman of the company and a Wall Street veteran.

SharpLink and BitMine currently hold more than the Ethereum Foundation.

Overall, the trend of capital inflows between ETH vault companies and ETFs shows that institutions are using Ethereum as the infrastructure layer to make heavy investments.This trend continues to strengthen.

Cathie Wood-led ARK Invest recently sold most of its shares in Coinbase and Roblox to increase its stake in BitMine Immersion with a $182 million investment.In the past, ARK had fewer configurations in ETH, and now it has reorganized its three flagship ETFs, and has adjusted the BitMine configuration ratio to 1.5%.

Billionaire Peter Thiel has also acquired a 9.1% stake in BitMine.

In addition, a new company called Ether Machine is about to go online, an entity formed by a merger of multiple companies aimed at creating a public company that provides Ethereum infrastructure and ETH revenue exposure to the company.

The company will be led by co-founder Andrew Keys (a former member of the board of directors of Consensys) and David Merin (a former executive of Consensys and current CEO of Ether Machine).After the merger is completed, Ether Machine plans to list on Nasdaq, which will hold more than 400,000 ETHs at that time, with a total valuation of more than $1.5 billion.

What exactly happened in the past few months?The recent “regime change” of the Ethereum Foundation may be one of the key factors.

At the end of April this year, the Ethereum Foundation carried out a major personnel restructuring, officially separating the board of directors from management for the first time.The new leadership team clearly stated that scalability of the Ethereum main layer, improving Layer 2 solution performance, and optimizing user experience are core priorities.

Ethereum’s practicality and profitability also make it a high-quality asset in the eyes of investors.

At present, there are no ETF products in the United States that provide pledge proceeds.The Securities and Exchange Commission (SEC) has not approved such mechanisms.If ETH ETFs can support staking in the future, Ethereum will be expected to become a “digital bond” in institutional investment portfolios.

Staking ETFs provide native yields of 3–5%.Even based on the current total holdings of $19.6 billion in ETH ETF, if the average yield is 4%, ETF issuers can earn more than $750 million in pledge revenue each year.

BlackRock is already exploring the feasibility of incorporating staking into the ETF structure.In its recently submitted 19b-4 revision document, it clearly mentions “staking as a potential future function” provided that it obtains regulatory approval.The market is waiting and watching.

Experts expect the staking function of ETH ETF is expected to be approved in the last quarter of this year.

For many investors, pledge may become the decisive factor between “exposure” and “commitment”.Passive income from compliant products may attract long-term capital such as pensions, endowments and sovereign wealth funds.

Market makers and trading institution Wintermute once pointed out in a report in the early stages of ETH ETF listing that the lack of staking mechanisms will weaken the attractiveness of Ethereum as an ETF carrier.

And once the macro environment turns—such as interest rate cuts, inflation stabilizes or funds seeking higher returns—ETH will become an attractive asset.It has the scarcity brought about by the shrinking supply, the profits generated by the pledge, and the availability achieved through ETFs and custodians.

Ethereum prices have begun to be linked to institutional activities.If prices break further, market sentiment will boost accordingly, attracting more capital inflows.In any case, after a long period of silence, retail investors and institutions will usher in the evolutionary stage of Ethereum.

ETH price has risen by more than 50% over the past two weeks, hitting a 2025 high.In the past three months, the increase has reached 150%.

For every new share issued by ETFs, equal amount of ETH must be purchased, thereby locking in market supply.The reduction in the amount of tradable ETH naturally puts upward pressure on the price.

It is expected that major ETH treasury companies will also choose to hold for a long time and will not take action easily.Registered investment advisors (RIAs), wealth management institutions and listed companies often do not pursue short-term returns, and they rarely sell in panic.

These vault builders are viewing Ethereum as a “programmable collateral”—an asset that generates revenue, ensures security and stable existence.

In addition, the current macro environment is also continuing to benefit:GENIUS ActRecently, it was officially signed into law, officially recognizing stablecoins as “digital cash”.As the main settlement layer of stablecoins, Ethereum will become the biggest beneficiary, with its current market share exceeding 50%.

So, what happens next?

Once the ETF staking function is approved by the SEC, institutional demand will continue to accelerate.More companies will also start to build ETH vaults due to the benefits brought by pledge.Asset management giants like BlackRock will also further increase the weight of ETH in their portfolio.

For traditional investors, this may be the first time they realize that ETH now has two strong institutional distribution channels – ETFs and vaults.Both lock in supply and penetrate Ethereum into the traditional economic system.

Those who try to compare Bitcoin’s ETFs with vaults to Ethereum ignore the essential differences.

BTC is a store of value tool, the “digital gold” in macro configuration; while ETH is being actually put into use.Fund issuers and vault builders buy ETH because of the functions it can achieve: pledge rewards, infrastructure operations, and programmable layers required for financial applications.

Bitcoin is an asset you hold in your hands;Ethereum is a system on which you can build a network.

  • Related Posts

    The New Era of ETH: Functionality over Narrative

    Author: Kevin Li Source: Artemis Translation: Shan Oppa, Bitchain Vision Dear fundamental investors, we have delved into Strategy, CoreWeave, Coinbase, Circle and Hyperliquid. Recently, Ethereum has received renewed attention, especially…

    A 60% surge in January. Where is the rushing Ethereum going?

    The brightest star in the market in July is Ethereum. As the weather vane of copycats, the market spotlight has finally hit the spotlight againOn ETH. Time is hereIn July,…

    Leave a Reply

    Your email address will not be published. Required fields are marked *

    You Missed

    CICC Research Report: Stablecoins, financial markets and RMB internationalization

    • By jakiro
    • July 25, 2025
    • 5 views
    CICC Research Report: Stablecoins, financial markets and RMB internationalization

    The New Era of ETH: Functionality over Narrative

    • By jakiro
    • July 24, 2025
    • 23 views
    The New Era of ETH: Functionality over Narrative

    Ethereum ETF’s first anniversary listing: Institutional frenzy hits new highs

    • By jakiro
    • July 24, 2025
    • 19 views
    Ethereum ETF’s first anniversary listing: Institutional frenzy hits new highs

    A 60% surge in January. Where is the rushing Ethereum going?

    • By jakiro
    • July 23, 2025
    • 15 views
    A 60% surge in January. Where is the rushing Ethereum going?

    Can ETH really replicate the micro-strategy Summer craze?

    • By jakiro
    • July 21, 2025
    • 18 views
    Can ETH really replicate the micro-strategy Summer craze?

    Ethereum’s Ten Years of Storm Record: Recalling Major Events Who is buying?

    • By jakiro
    • July 21, 2025
    • 19 views
    Ethereum’s Ten Years of Storm Record: Recalling Major Events Who is buying?
    Home
    News
    School
    Search