Ethereum exchange-traded funds (ETFs) are seeing notable institutional inflows, led by BlackRock and Fidelity, yet those gains have failed to move the market, according to new data from Glassnode.
Institutional Inflows Rise, But Price Impact Remains Muted
Over the past two weeks, spot ETH ETFs have attracted steady inflows across multiple trading sessions.
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BlackRock’s ETHA and Fidelity’s FETH have led the charge, with BlackRock’s fund surpassing $4.54 billion in total inflows since launch.
The data from SoSoValue shows that Friday alone brought in nearly $92 million across ETH ETFs, $50.45 million into ETHA, and $38.3 million into FETH.
However, Glassnode’s latest Ethereum Market Trends report, produced in partnership with CME Group, casts doubt on whether this activity is translating into meaningful price action.
ETF Market Share Shrinks as Launch Momentum Fades
The firm states that Ethereum ETFs account for only about 1.5% of trading volume in spot markets so far in 2025. Ethereum ETFs briefly gained traction in late 2024, with their market share peaking above 2.5%, but momentum has since faded, slipping back to around 1.5% in 2025, according to Glassnode.
Analysts attribute this to weaker market conditions when Ethereum ETFs were launched compared to Bitcoin ETFs, which debuted during a bull market.
Additionally, significant outflows from Grayscale’s ETHE, due to its high 2.5% fee, have weighed on overall ETF performance, as investors opted for lower-cost alternatives.
“These factors resulted in an initially weak performance for the Ethereum ETFs, with limited AUM growth during the first 5 months of trading,” Glassnode reports.
ETF Investors Face Losses Amid Price Lag
According to Glassnode, the average cost basis for BlackRock’s ETHA is $3,300, while Fidelity’s FETH investors are at around $3,500.
With Ethereum currently trading near $2,600, many ETF holders are still sitting on unrealized losses of around 20% or more.
Historically, this has triggered net outflows whenever ETH price dips below these cost thresholds, seen most recently in August 2024, and again in early 2025.
Ethereum ETFs now hold a combined 3.47 million ETH, worth approximately $9 billion, which accounts for roughly 2.9% of the total circulating supply.
Meanwhile, Bitcoin ETFs have begun to cool after a strong month, prompting speculation about a capital shift from BTC to ETH. Yet, as of now, that shift has not meaningfully altered Ethereum’s market dynamics.
Why This Matters
While rising ETH ETF inflows signal institutional interest, they currently have a limited impact on price or market structure. This disconnect highlights how Ethereum’s price is still largely driven by traditional spot trading, not ETF demand.
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An Ethereum ETF (Exchange-Traded Fund) is a financial instrument that allows investors to gain exposure to Ethereum’s price movements without directly owning the cryptocurrency. They are traded on traditional stock exchanges.
Buying ETH directly gives ownership and utility (e.g., DeFi use), while ETFs offer convenience, regulation, and no custody hassles. ETFs are suitable for traditional investors; ETH suits more active crypto users.
Ethereum ETFs can influence demand, but current data (e.g., from Glassnode) shows limited short-term price impact. Over time, wider adoption may support price growth, especially as institutional exposure increases.
