Ethereum ETF One Year Anniversary: From Indifference to Frenzy, Institutional Confidence Significantly Increased

Three months ago, even the staunchest supporters of Ethereum could hardly imagine that the Ethereum exchange-traded fund (ETF) in the United States would be celebrating its one-year anniversary. However, today the Ethereum ETF is迎来自己的高光时刻, having completed one year since its first trading on July 23, 2024.

In June 2025, the Ethereum ETF achieved its best monthly performance in history, with inflows exceeding $3.5 billion, a 70% increase compared to the previous peak of $2.08 billion on December 20, 2024. The inflow momentum in July has been even stronger, surpassing $3 billion to date, with the potential to exceed June's figure. The past two weeks up to July 18 have been the best two weeks for net inflows, and there have been no net outflows for ten consecutive weeks, which is a first in its 52-week existence.

However, the development of the Ethereum ETF has not been smooth sailing.

In May 2024, U.S. regulators approved the Ethereum ETF, which officially began trading on July 23 of the same year, with mixed reactions from the market at that time. The Bitcoin ETF had already captured all the attention earlier in the year, making the launch of the Ethereum ETF seem lackluster: its price performance was sluggish, interest gradually declined, and there was no significant influx of funds during its initial launch.

In fact, some early capital flows even showed a net outflow. In the first 39 weeks of trading, the Ethereum ETF only achieved net inflows in 15 weeks; whereas in the past 14 weeks, there were net inflows in 13 weeks, illustrating the significant shift in trends over the past three months.

As of July 21, 2025, the total assets under management (AUM) of all Ethereum ETFs in the United States have surpassed $19 billion, doubling from about $9.6 billion two months ago.

Not only ETFs, but institutional interest in Ethereum is also accelerating through the form of "Ethereum reserve assets."

On June 2, 2025, SharpLink Gaming became the first publicly listed company in the United States to announce the inclusion of Ethereum in its strategic reserves. While the crypto community was still focused on various listed companies incorporating Bitcoin into their balance sheets, Joe Lubin had brought Ethereum into the "reserve asset party."

As a co-founder of Ethereum and the founder and CEO of Consensys, Lubin joined the board of SharpLink Gaming and serves as chairman, leading the company's $425 million Ether strategic reserve.

Since the launch of the reserve asset plan, SharpLink has become the world's largest enterprise-level holder of Ether, holding 360,807 ETH, valued at over $1.3 billion at current prices. In addition, the company has raised an additional $413 million and has earned 567 ETH in rewards through staking its held Ether.

However, a new company that has recently focused on Ethereum reserve assets is in fierce competition with it.

Bitcoin mining company BitMine Immersion is also betting on Ethereum, holding over 300,000 ETH, valued at over $1 billion at current prices. Its chairman, Tom Lee, a veteran of Wall Street, has bigger goals: "We are steadily progressing towards our goal of acquiring and staking 5% of the total supply of Ethereum." Currently, the total amount of Ethereum held by SharpLink and BitMine has surpassed that of the Ethereum Foundation.

Overall, the capital flow of the Ethereum reserve asset company and the ETF reflects the confidence of institutions in viewing Ethereum as an infrastructure layer for investment, and this confidence is continuously strengthening.

A well-known investment firm recently reduced its holdings in some tech stocks and increased its investment in BitMine Immersion, amounting to $182 million. The firm previously had insufficient investment exposure to Ethereum and restructured its three flagship ETFs, allocating 1.5% of its portfolio to BitMine.

The newly formed company Ether Machine, created through the merger of existing companies, will build a publicly traded platform to provide institutional investors with a professional channel to access Ethereum infrastructure and Ether returns. The company was co-founded by Andrew Keys, a former board member and head of Consensys, and David Merin, a former executive at Consensys and the current CEO of Ether Machine. After the merger, Ether Machine plans to go public on NASDAQ, at which time it will hold over 400,000 ETH, valued at over $1.5 billion.

What changes have occurred in the past few months? The recent leadership changes at the Ethereum Foundation may be one of the reasons. At the end of April 2025, the Ethereum Foundation made adjustments to its leadership, separating the board from the management. The new leadership has clarified three core priorities: expanding the Ethereum base layer, optimizing Layer2 Rollup, and enhancing user experience.

The practical value and yield capability of Ethereum also make it an extremely attractive asset in the eyes of investors. Currently, there are no ETFs in the United States that offer staking rewards, and the U.S. Securities and Exchange Commission (SEC) has not yet approved them. If an Ethereum ETF can ultimately launch staking features, ETH is expected to become a "digital bond" in institutional portfolios.

ETFs that support staking may offer native yields of 3%-5%. Based on the current $19.6 billion Ethereum holdings, even at an average yield of 4%, ETF issuers could generate over $750 million in staking income.

A large asset management company is exploring product structures that include staking, and its submitted documents explicitly mention that staking is a "potential future feature pending regulatory approval," with the market watching closely. Experts predict that the staking feature of the Ethereum ETF is expected to be approved in the fourth quarter of this year.

For many investors, staking may be the key distinction between "shallow allocation" and "deep participation." Passive income obtained through compliant investment tools could attract pension funds, endowment funds, and sovereign wealth funds to enter the market.

A market maker and trading company pointed out in a report released last year when the Ethereum ETF was launched that the lack of a staking mechanism is a major shortcoming that could "weaken the attractiveness of Ethereum as an ETF vehicle."

If the macro environment changes, such as interest rate cuts, inflation stabilizing, or capital seeking higher returns, Ethereum will become a highly competitive choice: it combines the scarcity of supply deflation, the yield brought by staking, and the accessibility achieved through ETFs and custodians.

The price of Ethereum has shown a correlation with institutional activity. Further breakthroughs in price may trigger market optimism, attracting more capital inflow. In any case, after a long period of dormancy, the evolution of Ethereum will be welcomed by both retail and institutional investors.

In the past two weeks, the price of Ethereum has soared over 50%, reaching a new high for 2025; the cumulative increase over the past three months has reached 150%.

When new shares of the ETF are issued, ETH must be bought, which will lock in the supply. The reduction of ETH in circulation in the market will create upward pressure on the price.

It is expected that Ethereum reserve asset companies will also firmly hold ETH. Registered Investment Advisors (RIA), wealth management institutions, and publicly listed companies typically do not pursue short-term gains and rarely panic sell.

Reserve asset builders are positioning ETH as programmable collateral, an asset that can generate yield, provide security, and maintain stability.

In addition, the macro background is also favorable: the "GENIUS Act" was recently signed and took effect, legalizing stablecoins as digital cash. Ethereum, as the dominant network occupying 50% of the market share, will be the biggest beneficiary.

So, how will it develop in the future?

Once the SEC approves the ETF staking feature, institutional interest is expected to continue to heat up. More enterprises may establish Ethereum reserve assets due to the staking feature, and large asset management institutions will further increase their investment allocation in Ethereum.

For traditional investors, they may realize at this moment: Ethereum has two powerful circulation channels - ETF and reserve assets. Both lock in supply and extend Ethereum's influence into the traditional economy.

Those who directly compare Bitcoin with the reserve assets and ETFs of Ether are actually overlooking the core differences:

Bitcoin is regarded as a store of value and is termed "digital gold" in macro strategies; whereas Ethereum is assigned practical use cases. Fund issuers and reserve asset builders buy and support ETH, valuing its added benefits: staking rewards, infrastructure framework, and its role as a programmable layer for financial applications.

Bitcoin is a "holding-type" asset, while Ethereum is an "application-type" network.