Ethereum investment products have recorded their seventh consecutive week of net inflows, totaling $296.4 million. This sustained interest is driven by shifting narratives around public blockchains and growing anticipation for regulatory approvals related to staking in Ethereum ETFs.
Shifting Narratives and Institutional Interest
The growing adoption of stablecoins is reshaping how institutions view public blockchain networks like Ethereum. This change in perspective is significantly boosting interest in Ethereum-based exchange-traded funds (ETFs).
According to data from CoinShares, global Ethereum-related products attracted $296.4 million in net inflows last week alone. These products have now seen seven straight weeks of inflows, bringing the total to $1.5 billion.
James Butterfill, Head of Research at CoinShares, noted in a recent report: "This represents the strongest run of inflows since the U.S. elections last November and signals a notable recovery in investor sentiment."
U.S. spot Ethereum ETFs—spearheaded by BlackRock's iShares Ethereum Trust (ETHA)—accounted for the majority of these inflows, contributing $281.3 million. These funds have now recorded 15 consecutive days of positive inflows.
The Role of Stablecoins and Tokenization
Analysts at Bernstein, including Gautam Chhugani, attribute the rising interest in ETH ETFs to increasing attention from U.S. Congress and major fintech players like Visa, Mastercard, and Stripe regarding stablecoins and tokenization.
In a recent investor note, the analysts emphasized that the potential widespread use of stablecoin payments is altering how investors perceive public blockchain networks and their native cryptocurrencies.
They stated: "Investors often tell us—cryptocurrencies are useless, but blockchain is valuable. But it's not an either-or scenario. If you believe in stablecoin-based payment innovation, why wouldn't the Ethereum network—which mints stablecoins and processes their transactions—hold value? Any company using stablecoin technology pays transaction fees to the Ethereum network. Now there's utility and value accumulation. We believe the narrative around value accumulation in public blockchain networks is at a critical inflection point, reflected in growing investor interest in Ethereum ETF inflows."
This perspective gains relevance as the U.S. Senate moves closer to voting on the GENIUS Act in the coming weeks, which aims to establish a regulatory framework for stablecoins.
Anticipation Around Staking in ETH ETFs
Another key driver behind the inflows is the market's anticipation that the U.S. Securities and Exchange Commission (SEC) may approve staking within spot Ethereum ETFs. This expectation grew stronger after the SEC's Corporate Finance division stated in a May 29 announcement that certain staking activities may not fall under securities laws.
On Monday, Cboe BZX filed an application with the SEC seeking permission for staking within the Invesco Galaxy Ethereum ETF. This move aligns with similar proposals from Fidelity, Grayscale, Bitwise, and 21Shares, all awaiting regulatory decisions.
The application noted: "Based on discussions with the sponsor, the exchange proposes to amend multiple sections of the Ethereum ETP Amendment No. 1 to allow staking of ether held by the trust."
Meanwhile, the Ethereum Foundation (EF) is undergoing a restructuring process, establishing new teams focused on financial policy and protocol research.
Ethereum Price Analysis: ETH Retests Ascending Trendline
Ethereum futures recorded $21.4 million in liquidations over the past 24 hours, according to Coinglass data. Long and short positions accounted for $300,000 and $21.07 million in liquidations, respectively.
Over the past three days, ETH broke through its ascending trendline resistance after facing several rejections. If the cryptocurrency can maintain its position above this trendline, it may challenge the next resistance zone between $2,750 and $2,850.
The 200-day Simple Moving Average (SMA) has acted as dynamic resistance, suppressing the price since May 13. A decisive break above this level could signal the start of a new upward trend.
On the downside, ETH may find short-term support around $2,400. Further below, the $2,250–$2,100 range—supported by the 50-day SMA—could provide stronger support if ETH falls below $2,400.
The Relative Strength Index (RSI) remains above neutral and is approaching its moving average. Meanwhile, the Stochastic Oscillator (Stoch) is rising toward its midline. A crossover above these levels could strengthen Ethereum's bullish momentum.
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Frequently Asked Questions
What is driving the recent inflows into Ethereum ETFs?
The inflows are primarily driven by growing institutional interest in public blockchains, increasing stablecoin adoption, and anticipation of SEC approvals for staking mechanisms within ETH ETFs.
How might staking approval impact Ethereum ETFs?
If approved, staking would allow ETF providers to earn yield on held assets, potentially making these products more attractive to income-focused investors and supporting higher demand.
What are the key resistance levels for Ethereum's price?
ETH faces significant resistance between $2,750 and $2,850, with the 200-day SMA acting as dynamic resistance. A break above these levels could indicate a stronger bullish trend.
Could stablecoin regulation affect Ethereum's value?
Yes, regulatory clarity around stablecoins—such as through the proposed GENIUS Act—may validate Ethereum's utility for payments and settlement, reinforcing its value proposition.
What is the significance of the seven-week inflow streak?
A sustained inflow streak suggests growing confidence among institutional investors and may indicate longer-term bullish sentiment toward Ethereum's fundamentals.
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