Ethereum ETF One Year Anniversary: From Being Overlooked to Explosive Growth, Institutional Confidence Shift Drives Capital Inflow

Three months ago, even the most fervent supporters of Ethereum could hardly imagine that the Ethereum exchange-traded fund (ETF) in the United States would be celebrating its first anniversary. However, today the Ethereum ETF is迎来属于自己的高光时刻, having completed a year since it first began trading on July 23, 2024.

In June 2025, the Ethereum ETF achieved the best monthly performance in history, with inflows exceeding $3.5 billion, 70% higher than the previous peak of $2.08 billion on December 20, 2024. The inflow momentum in July has been even stronger, surpassing $3 billion so far, with the potential to exceed June's figures. The past two weeks up to July 18 have seen the best net inflow performance; there has also been no net outflow for ten consecutive weeks, which is the first time in its 52-week duration.

However, the development of the Ethereum ETF has not been smooth sailing. In May 2024, U.S. regulators approved the Ethereum ETF, and trading officially began on July 23 of the same year, with mixed reactions from the market. After all, the Bitcoin ETF had already captured all the spotlight earlier in the year, making the debut of the Ethereum ETF seem uneventful: price movements were sluggish, attention gradually decreased, and there was no significant influx of funds seen in the early stages of its launch.

In fact, some early capital flows even showed a net outflow. In the first 39 weeks of trading, the Ethereum ETF only saw a net inflow of funds in 15 weeks; compared to the past 14 weeks, there were net inflows in 13 weeks, highlighting the significant shift in trend over the past three months.

As of July 21, 2025, the total assets under management (AUM) of all Ethereum ETFs in the United States have exceeded $19 billion, doubling from approximately $9.6 billion two months ago.

Not only ETFs, but institutional interest in Ethereum has also accelerated through the form of "Ethereum reserve assets." On June 2, 2025, a gaming company became the first publicly traded company in the United States to announce that it would include Ethereum in its strategic reserves. While the crypto community was still focused on a number of public companies incorporating Bitcoin into their balance sheets, Ethereum co-founders had already brought Ethereum into the "reserve asset party."

Since the launch of the reserve asset plan, this gaming company has become the world's largest enterprise-level Ethereum holder, holding 360,807 ETH, which is worth over $1.3 billion at current prices. In addition, the company has raised an additional $413 million and has earned a total of 567 ETH in rewards through staking its held Ethereum.

However, a newly established company focusing on Ethereum reserve assets is fiercely competing with it. A Bitcoin mining company is also betting on Ethereum, holding over 300,000 ETH, valued at over 1 billion dollars at current prices. Its chairman is a veteran from Wall Street, and he has a larger goal: "We are steadily advancing our objective, planning to acquire and stake 5% of the total supply of Ethereum." Currently, the total amount of Ethereum held by these two companies has surpassed that of the Ethereum Foundation.

Overall, the capital flow of the Ethereum reserve asset company and the ETF reflects the confidence of institutions in viewing Ethereum as an infrastructure layer for investment, and this confidence is continuously strengthening.

A well-known investor's investment firm recently reduced its holdings in a certain trading platform and a gaming company, instead increasing its stake in the aforementioned Bitcoin mining company, with an investment amount of $182 million. The company previously had insufficient exposure to Ethereum, restructured its investments in three flagship ETFs, allocating 1.5% of its portfolio to this mining company.

Another billionaire also holds 9.1% of the company's shares.

The newly formed company Ether Machine, created through the merger of existing companies, will build a publicly traded platform to provide institutional investors with professional-grade access to Ethereum infrastructure and Ether returns. The company is co-founded by two seasoned professionals from the Ethereum ecosystem. After the merger, Ether Machine plans to go public on NASDAQ, at which point it will hold over 400,000 ETH, valued at over $1.5 billion.

What changes have occurred in the past few months? The recent leadership changes at the Ethereum Foundation may be one of the reasons. At the end of April 2025, the Ethereum Foundation made adjustments to its leadership, separating the board from the management. The new leadership has clarified three core priorities: expanding the Ethereum base layer, optimizing Layer 2 Rollup, and enhancing user experience.

The practical value and yield capability of Ethereum also make it an extremely attractive target for investors. Currently, there is no ETF in the U.S. that offers staking rewards, as the U.S. Securities and Exchange Commission (SEC) has not yet approved it. If an Ethereum ETF is eventually able to launch staking features, ETH is expected to become a "digital bond" in institutional portfolios.

The supported staking ETFs may offer a native yield of 3%-5%. Based on the current $19.6 billion Ethereum holdings, even with an average yield of 4%, the ETF issuers could earn over $750 million in staking income.

A large asset management company is exploring product structures that include staking, as explicitly mentioned in its submitted 19b-4 amendment documents, stating that staking is a "potential future feature pending regulatory approval," and the market is watching closely. Experts predict that the staking function of the Ethereum ETF is expected to be approved in the fourth quarter of this year.

For many investors, staking may be the key distinction between "shallow allocation" and "deep participation." Passive income obtained through compliant investment instruments may attract pension funds, endowment funds, and sovereign wealth funds to enter the market.

If the macro environment changes, such as interest rate cuts, inflation stabilizing, or capital seeking higher returns, Ethereum will become a highly competitive choice: it combines the scarcity of supply deflation, the yield brought by staking, and the accessibility achieved through ETFs and custodial institutions.

The price of Ethereum has shown a correlation with institutional activity. A further breakthrough in price may trigger market optimism, attracting more funds to flow in. In any case, after a long period of silence, the evolution of Ethereum will be welcomed by both retail investors and institutions.

In the past two weeks, Ethereum's price has soared over 50%, reaching a new high for 2025; the cumulative increase over the past three months has reached 150%.

When new shares of the ETF are issued, ETH must be purchased, which will lock the supply. The reduction of ETH in circulation in the market will create upward pressure on the price.

It is expected that the Ethereum reserve asset company will also firmly hold ETH. Registered Investment Advisors (RIA), wealth management institutions, and publicly listed companies typically do not pursue short-term gains and rarely panic sell.

Asset builders are positioning ETH as programmable collateral, an asset that can generate yields, provide security, and maintain stability.

In addition, the macro background is also favorable: the "GENIUS Act" was recently signed and has come into effect, legalizing stablecoins as digital cash. Ethereum, as the dominant network occupying 50% of the market share, will become the biggest beneficiary.

So, how will it develop in the future?

Once the SEC approves the ETF staking feature, institutional interest is expected to continue to heat up. More companies may establish Ethereum reserve assets due to the staking feature, and large asset management institutions will further increase their investment allocation in Ethereum.

For traditional investors, they may realize at this moment: Ethereum now has two powerful circulation channels - ETF and reserve assets. Both lock in supply and extend Ethereum's influence into the traditional economic sphere.

Those who directly compare Bitcoin with Ether's reserve assets and ETFs actually overlook the core differences:

Bitcoin is regarded as a store of value, considered the "digital gold" in macro strategies; while Ethereum is assigned practical use. Fund issuers and reserve asset builders buy and support ETH, valuing its added benefits: staking rewards, infrastructure framework, and as a programmable layer for financial applications.

Bitcoin is a "holding-type" asset, while Ethereum is an "application-type" network.