Ethereum ETFs Just Hit $4B: IRS Clarity and Low Fees Push Ethereum into Big Portfolios

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According to latest reports, US Ethereum ETFs have hit $4.01 billion in cumulative net inflows, a new high for the crypto space. The pace has picked up sharply in the last 15 days, garnering $1 billion in just 15 trading days, much faster than the first 10 months of the ETFs existence. This is telling on the current scope of investor confidence in Ethereum as a core portfolio holding.

Leading the charge is BlackRock’s iShares Ethereum Trust (ETHA), the biggest driver of these flows with $5.3 billion in gross inflows since launch. Fidelity’s FETH has $1.65 billion and Bitwise’s ETHW has $346 million. Together these ETFs are pulling in capital at a serious rate for Ethereum.

Grayscale Outflows Slow, Market Dynamics Change

Market officials have reported that while new ETFs are still flowing in, Grayscale’s legacy product ETHE has been seeing redemptions of $4.28 billion since conversion. However, in the last two weeks, that has slowed down. Redemptions from ETHE slowed between May 30 and June 23, giving room for overall market inflows to rise.

Ethereum ETFs Inflows — *Ethereum ETFs Record $1B Surge*

On June 11 alone, ETHA brought in over $160 million, five other days between late May and late June each had over $100 million in net inflows. The pattern is buy-side demand, especially from institutional players who had been holding back due to high fees and regulatory uncertainty.

Low Fees, IRS Clarity Driving Adoption

The structure of these ETFs has been key to their success. Analysts point to different factors driving this surge. One of these is the fee advantage. ETHA and FETH both have a 0.25% management fee, much lower than Grayscale’s 2.5% ETHE. That fee difference is making financial advisors and fund allocators take notice, especially those managing multi-asset portfolios for clients.

A report by CoinShares, citing brokerage and fund allocation data, noted that the June surge was also helped by two big factors: first, the ETH/BTC rebound and second, new IRS guidance on how staking income should be treated in grantor-trust ETF structures. This regulatory clarity removed a big question mark for advisors and institutions, making ETH-based ETFs more appealing as long-term positions.

Institutional Interest to Be Confirmed

More confirmation is expected through the US SEC’s 13F filings in mid-July. These will show if institutional managers have added to their Ethereum ETF exposure since Q1. As of March 31, institutional ownership was less than 30% of total ETF assets, hence, that number is expected to rise as ETH becomes a more mainstream portfolio holding.

The recent surge in spot Ethereum ETFs shows investors are getting smarter and more willing to take on risk with digital assets. ETH’s bounce, combined with cheap funds and institutional clarity, is turning Ethereum from a niche altcoin to a real investment product for wealth managers.

While volatility is always present in crypto, the steady inflows and slowing redemptions suggest a structural shift.

Conclusion

The ongoing flood of capital into spot Ethereum ETFs is no longer theoretical. Clearer regulatory guidance, competitive fees and broader macro interest are of high importance for Ethereum right now. As the market waits for 13F filings and watches ETF flows, all signs point to Ethereum going far beyond its usual investor base.

As Ethereum gains traction and asset managers get more comfortable, spot Ethereum ETFs may be as common in portfolios as equities and bonds.

Summary

U.S.-listed spot Ethereum ETFs have seen $4.01 billion in cumulative inflows, $1 billion in 15 trading days. Leading the charge is BlackRock’s ETHA with over $5.3 billion in gross inflows, followed by Fidelity’s FETH and Bitwise’s ETHW. Grayscale’s ETHE has seen $4.28 billion in redemptions, but outflows are slowing.