Ethereum ETFs Mark First Anniversary: A Look at Their Impact and Performance

In July 2024, the U.S. market saw the long-awaited launch of the first Ethereum futures-based ETFs. ETPs (Exchange Traded Products) are investment instruments issued by asset management firms and traded on stock exchanges like shares. They offer investors regulated access to underlying assets (such as cryptocurrencies, commodities, or indices) without direct ownership, along with liquidity and diversification.

Here’s how the first year unfolded, including market leaders and key development factors.

From Approval to Market Launch

Until July 2024, the market faced prolonged regulatory uncertainty. The U.S. Securities and Exchange Commission (SEC) was in no rush to approve Ethereum ETFs. Among the main concerns were the potential for market manipulation, insufficient liquidity in ETH futures contracts, and the lack of a clear legal classification of Ethereum as an asset. Regulators were also worried that investors didn’t fully understand the risks associated with derivatives on digital assets.

In July 2024, the SEC finally gave the green light to several Ethereum futures ETFs.

Among the first to be approved were:

• ProShares (with its ProShares Ether Strategy ETF, ticker ETHO): a well-known American company and pioneer in crypto ETFs, which launched the first U.S. Bitcoin futures ETF (BITO). It focuses on innovative, often derivative-based, products.
• VanEck (VanEck Ethereum Strategy ETF, ticker EFUT): a global investment firm with a long history, active in the digital assets space. Known for its research and efforts to provide access to new asset classes.
• Bitwise (Bitwise Ethereum Strategy ETF, ticker AETH): one of the largest crypto index and fund managers, specializing exclusively in digital assets. It stands out among peers for its deep crypto expertise and transparency.

Soon after, other major industry players like BlackRock, Grayscale, and Fidelity entered the market with their own products, significantly expanding the range of options for institutional investors.

The approval of Ethereum futures ETFs followed a similar move for Bitcoin futures ETFs. These instruments allow investors to gain exposure to Ethereum’s price movements without directly holding the asset, easing entry for traditional funds. The first days of trading were met with moderate enthusiasm. Volumes were not as explosive as those of the initial Bitcoin ETFs, but the mere appearance of Ethereum ETFs on major U.S. exchanges sent a strong signal about the asset’s growing legitimacy.

Current Landscape: Volume, Flows, and Profitability

One year later, the Ethereum ETF market in the U.S. is showing strong momentum.

Crypto funds reached record inflows of $4.39 billion by the third week of July 2025, according to CoinShares. Ethereum played a key role: in the third week of July, Ether funds attracted a record $2.12 billion in a single week, nearly double the previous high. For comparison, Bitcoin products saw about $2.2 billion in inflows during the same week.

By mid-July, Ethereum was nearly on par with Bitcoin in terms of capital inflows. Since the start of July, ETH ETFs received around $3.3 billion, while Bitcoin ETFs saw about $5.6 billion. The largest single-day ETH ETF inflow occurred on July 16, 2025, totaling approximately $727 million.

Strong investor interest was matched by rising trading activity. The total weekly turnover for crypto ETFs/ETPs globally reached $39.2 billion by mid-July, an all-time high. Most of this volume and inflow came from the U.S. (about 99%), reflecting capital flows from North American institutional investors.

July 2025 became the best month on record for Ethereum ETFs. By July 23, cumulative monthly inflows had exceeded $3 billion. This was driven not only by a price rally in ETH (which jumped by about 40–50% to roughly $3,700), but also by an improved regulatory outlook.

By the end of July 2025, total assets under management (AUM) across all U.S. Ethereum ETFs approached $16–20 billion, marking an impressive rise from zero within a single year.

Leading Ethereum ETF Players

• BlackRock iShares Ethereum Trust (ETHA): about $9.7 billion in AUM, controlling roughly 60% of the market.
• Grayscale Ethereum Trust (ETHE): approximately $4.28 billion in AUM.
• Fidelity Ethereum Fund (FETH): around $2.35 billion in AUM.

Other smaller Ethereum funds are also present in the market, managed by Franklin Templeton (ETF EZET), VanEck (ETHV), Bitwise (ETHW), and 21Shares in partnership with ARK Invest (ETF CETH), among others. These hold assets in the hundreds of millions. Together, they complement the rest of the market. For example, the combined AUM of funds from Franklin, VanEck, Invesco, Bitwise, and ARK 21Shares is estimated in the low billions. However, each individual fund is much smaller than the top three, with market shares of only a few percent or less.The overall scale of institutional investment in Ethereum through regulated products has grown significantly, reaching approximately $26 billion by mid-July (including trusts and ETPs). Ethereum now accounts for about 10–15% of total institutional crypto fund assets, while Bitcoin still holds over 80%. Nevertheless, ETH’s share is growing rapidly as new capital flows in.

Factors Influencing the U.S. Ethereum ETF Market

Several key factors have shaped this rapid growth. The development of the Ethereum ETF market is shaped by both internal and external forces. Among the key drivers is the growing institutional interest in crypto and the relatively clear regulatory environment surrounding futures-based products. Ethereum’s price performance and successful network upgrades also supported institutional engagement. The overall positive sentiment in the crypto market, especially after the approval of spot Bitcoin ETFs, created favorable conditions.

However, there are serious barriers as well. The most significant one is the futures-based nature of these ETFs. Investors still tend to favor spot products, which holds back part of the potential capital. Regulatory uncertainty remains a considerable obstacle. The SEC continues to take a cautious approach to spot crypto ETFs.

High market volatility also discourages more conservative investors. Competition from other investment tools and macroeconomic factors further influence capital flows.

Still, the anticipated introduction of staking within the ETF structure (several managers, including BlackRock, have already submitted applications to the SEC) could become a strong catalyst, as it would enable funds to generate additional annual yields of around 4–5%.

What we’re seeing is Ethereum becoming the clear number two crypto choice for mainstream investors. If this money keeps flowing in, Ethereum ETFs could grow fast enough to seriously challenge Bitcoin’s dominance and bring crypto even further into Wall Street’s mainstream.