Institutional demand for ETH surges as supply on exchanges drops to 9-year low
Spot Ether exchange-traded funds (ETFs) recorded their largest-ever daily net inflow on Monday, drawing in a combined $1.01 billion — far outpacing Bitcoin ETFs, which saw $178 million in inflows the same day. The surge in interest comes as Ethereum (ETH) has climbed 45% over the past 30 days, trading at $4,306.
The bulk of the investment went to BlackRock’s iShares Ethereum Trust (ETHA), which attracted a record $640 million. The Fidelity Ethereum Fund (FETH) followed closely, adding $277 million, marking its own largest single-day inflow.
“Feel like spot ETH ETFs were severely underestimated simply because traditional finance investors didn’t understand ETH,” said Nate Geraci, president of ETF consultancy The ETF Store. “Now, it’s being recognized as the backbone of future financial markets.”
According to Glassnode, Ether balances on centralized exchanges fell to 15.28 million ETH on August 7 — the lowest level since November 2016. Investors moving assets off exchanges is widely viewed as a bullish sign, often indicating long-term holding intentions.
Onchain analytics platform Token Terminal highlighted that Ethereum controls approximately 58% of all tokenized assets across blockchains. Additionally, the value of assets staked on the Ethereum network has surpassed $150 billion for the first time.
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Corporate ETH holdings have also expanded sharply, reaching $13 billion in assets under management due to both price appreciation and institutional buying.
While momentum is strong, analysts caution that short-term traders have begun taking profits, suggesting the possibility of a near-term pullback. Still, the record-breaking ETF inflows point to deepening institutional conviction in Ethereum’s long-term role in the evolving digital economy.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.