US spot Ether (ETH) exchange-traded funds (ETFs) have reached a new milestone, posting a record daily net inflow of $717 million on Wednesday. This surge in investment coincides with a broader rally in the altcoin market.
BlackRock's iShares Ethereum Trust (ETHA) led the charge, experiencing a daily inflow record of $489 million. Fidelity's FETH fund also saw significant interest, with the second-highest net inflow of $113 million. Overall, the combined U.S. spot Ethereum ETFs attracted $383.1 million in net inflows on a recent Thursday, with other funds like Grayscale's ETH and ETHE, Bitwise's ETHW, and VanEck's ETHV also registering inflows.
The total holdings of US spot Ether ETFs now exceed 5 million ETH, representing over 4% of the cryptocurrency's circulating supply. This increasing accumulation highlights the growing institutional interest in Ether as an asset class. Prior to this week, the highest daily net inflow for these ETFs was $428 million, recorded on December 5, 2024.
The recent surge in Ether ETF inflows comes amid growing enthusiasm for spot Ether ETFs. Since the start of 2025, U.S.-listed spot Ether ETFs have attracted $2.6 billion in net inflows, with $900 million of that arriving in the past week alone. BlackRock's ETHA is leading the way with $2.8 billion in inflows.
While Ether's price has been climbing, it has not matched Bitcoin's performance. Over the past month, Ether is up 19.8%, modestly ahead of Bitcoin's 14.5% gain, but it remains down 9.2% year-to-date. Bitcoin, conversely, has surged 29% this year and has repeatedly hit record highs, recently exceeding $123,000. Ether is trading around $3,000, which is 25% below its December 2024 peak and 37% below its all-time high from 2021.
The performance of ETHA has been strong, with assets growing to $6.1 billion. Total assets in U.S. spot Ether ETFs now exceed $13.5 billion, indicating that these products could drive demand, similar to the impact of spot Bitcoin ETFs on Bitcoin.
The rise in Ether ETF activity has occurred alongside a broader rally in the altcoin market. A softer-than-expected U.S. inflation reading and continued ETF inflows have boosted risk appetite, overshadowing concerns about tariffs and Federal Reserve uncertainty. Ether jumped over 6.1% to $3,150, while Solana (SOL) rose more than 4% to $166. Bitcoin saw a more modest 2% increase.
Analysts suggest that the recent price action and ETF flows indicate a rotation into altcoins, particularly Ether. New demand from corporate treasuries has also positioned Ether for capital allocation. One analyst noted that as Bitcoin consolidates near its all-time high, altcoins are catching up, potentially signaling the start of an "altseason rotation".
The launch of new altcoins, such as PUMP, has also contributed to the excitement in the crypto market. PUMP's initial coin offering (ICO) raised $500 million in just 12 minutes, resulting in a $4 billion valuation. Coinbase recently announced the listing of PUMP with an experimental tag.
The increasing interest in Ether ETFs and the rise of altcoins reflect a growing diversification and maturation of the cryptocurrency market. As institutional and retail investors explore new opportunities beyond Bitcoin, the market is seeing increased activity and innovation.
