Strong inflow momentum for Spot Ethereum ETF, with the $4 billion mark already surpassed.

In just 11 months, the cumulative net inflow of funds into U.S. Spot Ethereum ETF products has exceeded $4 billion, demonstrating strong growth momentum. Since their launch on July 23, 2024, these ETF products have gone through 231 trading days, with particularly impressive performance in the most recent 15 trading days.

As of May 30, the cumulative net inflow of these ETF products was $3 billion. However, in just the next 15 trading days, it quickly increased by another $1 billion. By the close on June 23, the total net subscriptions had reached the milestone of $4.01 billion. It is noteworthy that these 15 trading days accounted for only 6.5% of the total trading history, yet contributed 25% of the capital inflow.

Among the main ETF products driving this growth, the Ethereum trust of a certain asset management company stands out, with total inflows reaching $5.31 billion. The ETF products of two other companies contributed inflows of $1.65 billion and $346 million, respectively. In contrast, the traditional Ethereum trust of an established asset management company recorded outflows of $4.28 billion during the same period.

Daily capital flow data further corroborates this trend. For instance, on June 11, over $160 million flowed into a certain ETF product in a single day. Between May 30 and June 23, this product saw five trading days with single-day inflows exceeding $100 million. Meanwhile, the redemption speed of established trusts has slowed, resulting in a significant increase in overall capital inflow.

Most newly launched ETF products charge a management fee of 0.25%, which is in line with the industry median and significantly lower than the traditional trust rate of 2.5%. According to a report from a research institution, the combination of lower costs and established relationships in the primary market is the main reason for the continuous flow of funds into these new ETF products.

The report also pointed out that there are three key factors behind the surge in capital inflows in June: First, the ETH price rebounded relative to BTC; second, the U.S. tax authority provided clearer tax guidance on staking income in grantor trust ETFs; finally, rebalancing operations by large multi-asset allocators also drove capital inflows, as they view Ethereum as an important component of their portfolios rather than merely a speculative asset.

The upcoming mid-July deadline for the quarterly 13F filing will reveal whether professional investment managers have participated in this wave of capital inflow. Data as of March 31 shows that these institutions hold less than 33% of the Spot Ether ETF assets, indicating that there is still considerable room for increased participation from institutional investors.

Overall, the Spot Ethereum ETF market has shown strong growth momentum, attracting not only retail investors but also gradually gaining favor with institutional investors. With the continuous maturation of the market and the increasingly clear regulatory environment, this trend is expected to continue.