Ethereum-based exchange-traded funds (ETFs) in the U.S. are witnessing unprecedented momentum, as institutional investors continue to pour in capital. According to data reported by The Block, U.S. spot Ether ETFs recorded their highest-ever daily net inflows of $717 million this week, surpassing the previous high of $428 million set in December 2024. BlackRock’s iShares Ethereum Trust (ETHA) alone attracted $489 million, while Fidelity’s FETH brought in $113 million.
These inflows pushed total assets held by Ether ETFs beyond 5 million ETH, now accounting for over 4% of the circulating Ethereum supply. Blockchain analytics firm Ultra Sound Money revealed that the funds acquired Ethereum at a rate 107 times higher than its daily issuance. This signals not just growing confidence in Ethereum as an asset class, but also strong accumulation pressure from institutions.
The broader altcoin market has also responded positively, buoyed by this surge in Fuel ETF inflows, improved regulatory clarity, and renewed investor optimism. According to ETF.com, Ether ETFs have now amassed over $2.6 billion in net inflows in 2025 alone, with $900 million flowing in just over the past week.
SEC Delays Decision on In-Kind Creation Structure
In parallel with the capital inflows, regulatory developments are shaping the future of crypto ETFs. The U.S. Securities and Exchange Commission (SEC) has extended its deadline to September 8, 2025, for deciding whether to allow in-kind creation and redemption for Bitwise’s spot Bitcoin and Ethereum ETFs. This model would permit authorized participants to exchange actual ETH or BTC for ETF shares, rather than settling via cash.
As reported by Crypto Briefing, several leading asset managers, including BlackRock, Fidelity, WisdomTree, VanEck, and 21Shares, have submitted similar proposals. SEC Commissioner Hester Peirce has hinted at eventual approval, stating that the in-kind mechanism is “definitely coming at some point.”
The adoption of an in-kind model would mark a significant evolution for crypto ETFs in the U.S., aligning them more closely with commodity ETFs such as those tracking gold. This change could enhance operational efficiency, reduce slippage, and improve tracking to net asset value (NAV), making crypto ETFs more attractive to both institutional and retail investors.
Market Outlook: Momentum Builds Ahead of Key Milestones
While Ethereum’s price has lagged behind Bitcoin in 2025, trading around $3,000—roughly 25% below its peak—analysts believe that continued Fuel ETF inflows could act as a strong support base. With staking-related ETF products also under regulatory review, market participants anticipate even greater inflows if approvals materialize.
Experts believe that Ethereum’s deflationary mechanics, combined with sustained institutional buying, could propel its price higher in the coming quarters. Analysts from CryptoQuant and MarketWatch have suggested that under a favorable regulatory environment, ETH could surpass $5,000 by 2025.
Moreover, if the SEC approves the in-kind structure, it could pave the way for a new era of crypto ETF operations, bringing traditional financial efficiencies to the digital asset market. Such a move would significantly enhance investor confidence and deepen market maturity.
The confluence of record-breaking Ether fuel ETF inflows and potential regulatory shifts marks a turning point for Ethereum’s institutional narrative. As demand accelerates and key decisions loom, Ethereum is increasingly cementing its position as a foundational asset within the evolving digital economy.
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