Ethereum (ETH) has demonstrated impressive momentum, recording its strongest six-week inflow streak since December 2024. Last week alone, Ethereum investment products attracted $286 million, contributing to a remarkable total inflow of $10.9 billion over the past seven weeks. This surge in capital reflects a renewed wave of investor confidence amid ongoing macroeconomic uncertainties and regulatory challenges, particularly in the United States.
The latest data from CoinShares highlights Ethereum’s dominant position in the crypto inflow landscape. Ethereum accounted for $321 million of the total inflows last week, making it the largest single-week gain among cryptocurrencies in 2025. This bullish streak follows six consecutive weeks where Ethereum accumulated inflows totaling $1.19 billion, underscoring strong and growing institutional interest in the smart contract powerhouse.
In contrast, Bitcoin, often viewed as the flagship digital asset, experienced a more volatile path. Despite early-week strength, Bitcoin’s inflows turned negative following a U.S. federal court ruling that declared tariffs imposed under the International Emergency Economic Powers Act (IEEPA) unlawful. The court’s decision added to broader market volatility and weighed on investor sentiment toward Bitcoin products. Consequently, Bitcoin ended the week with outflows totaling $8 million, marking its first weekly decline after six weeks of steady inflows amounting to $9.6 billion.
Other altcoins showed mixed trends. XRP, for example, experienced its second consecutive week of outflows, shedding $28.2 million, which signals some weakening investor enthusiasm amidst ongoing regulatory uncertainties. This mixed performance across altcoins suggests that while Ethereum has captured much of the recent spotlight, the broader crypto market remains sensitive to external pressures.
From a geographical standpoint, the United States continued to lead as the primary source of crypto investment inflows, contributing $199 million last week. However, the market is gradually becoming more geographically diverse. Hong Kong, for instance, registered its strongest inflows—$54.8 million—since the introduction of its exchange-traded products just over a year ago. This shift indicates expanding interest beyond traditional Western markets and points to growing international participation in crypto investments.
Despite the significant inflows into Ethereum and other crypto assets, the total assets under management (AuM) for crypto investment products declined slightly to $177 billion from a previous peak of $187 billion. This decrease reflects some short-term price weakness across major cryptocurrencies but does not diminish the positive trend of increasing institutional participation in Ethereum.
Ethereum’s renewed momentum can be linked to several key developments. One notable catalyst is the recent successful upgrade known as Pectra, implemented in May. The Pectra upgrade improved Ethereum’s staking efficiency and bolstered its long-term scalability prospects. This technical improvement contributed to heightened investor optimism, as demonstrated by the $205 million inflows during the week ending May 17, and has helped cement Ethereum’s status as a leading smart contract platform.
Institutional interest is further buoyed by regulatory prospects, particularly the anticipation of approval for a spot Ethereum staking ETF by the U.S. Securities and Exchange Commission (SEC). Reports indicate that BlackRock, a global asset management giant, is actively pushing the SEC for approval, which could come within the next two weeks. Market observers speculate that such an approval could dramatically boost Ethereum’s price, with some predicting it could soar as high as $12,000.
The supply dynamics of Ethereum also play a crucial role in the bullish narrative. On-chain data reveal that the amount of Ethereum held on exchanges has plunged to the lowest levels in seven years. This decline suggests that long-term holders are increasingly accumulating and removing their ETH from liquid markets, potentially leading to a supply shock that could drive prices upward.
With Ethereum leading the inflows and institutional appetite rising, coupled with tightening liquid supply, the conditions appear favorable for a potential price breakout. Nevertheless, this outlook depends heavily on positive regulatory developments, which remain the primary wildcard for Ethereum and the broader crypto ecosystem.
In summary, Ethereum is currently experiencing its strongest inflow momentum since late 2024, driven by technical upgrades, growing institutional interest, and shrinking exchange supply. While challenges remain, including regulatory uncertainty and macroeconomic headwinds, the overall sentiment toward Ethereum remains bullish, positioning it well for potential gains in the coming months.
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