Ethereum Spot ETFs Experience High Monthly Inflows at $393M and How the ‘Pectra’ Upgrade will Affect ETH Users

This article dives into recent shifts in the crypto market and it covers strong inflows into Ethereum spot ETFs and contrasts them with outflows from Bitcoin ETFs. Ethereum ETFs experienced $1.61 million net inflows in one week and $393 million in monthly inflows for Ether ETFs. It explains key technical figures like a net asset value of $9.981 billion and a net asset ratio of 3.14%. Ethereum is currently trading at $2,714.48 at the time of writing and details a major network upgrade scheduled for April 8, 2025. Investors receive insights into carry trading strategies and future prospects of Ethereum ETFs in the crypto market. 

Source: KuCoin

• Ethereum spot ETFs posted a net inflow of $1.61 million between February 18 and February 21, 2025. Data from SoSoValue shows that major funds such as the Fidelity Ethereum ETF added $26.32 million this week. This weekly performance boosts its historical net inflow to $1.54 billion.

• Nine Ether spot ETFs attracted $393 million in net inflows this month. This figure is seven times higher than inflows in January. Outflows occurred on only two trading days, indicating strong investor confidence and sustained market activity despite Ethereum trading at $2,714.48

• Eleven Bitcoin ETFs recorded a net outflow of $376 million this month. Inflows were observed on only four trading days. Bitcoin remains below $100,000, reflecting shifting investor sentiment amid volatile memecoin movements.

Source: VettaFi

An Ethereum ETF (Exchange-Traded Fund) is a financial product that lets you invest in Ethereum (ETH) without directly owning the cryptocurrency. These ETFs track the price of ETH and trade on traditional stock exchanges, offering a familiar investment vehicle.

There are two main types of Ethereum ETFs:

1. Spot Ethereum ETFs: These funds invest directly in ETH, reflecting its current market price. For example, the iShares Ethereum Trust ETF (ETHA) seeks to mirror the performance of ETH's price.

2. Futures-Based Ethereum ETFs: These funds invest in ETH futures contracts, which are agreements to buy or sell ETH at a predetermined price on a future date. An example is the ProShares Bitcoin & Ether Market Cap Weight Strategy ETF (BETH), which includes exposure to ETH futures.

Investing in an Ethereum ETF provides exposure to ETH's price movements through a regulated financial product, eliminating the need to manage digital wallets or navigate cryptocurrency exchanges. However, it's essential to be aware of associated fees and the inherent volatility of the cryptocurrency market.

Source: The Block

During the week of February 18th to February 21, 2025, Ethereum spot ETFs received a net inflow of $1.61 million. Data shows that the Fidelity Ethereum ETF (FETH) recorded a weekly net inflow of $26.32 million. Its historical net inflow now totals $1.54 billion. In contrast, the Grayscale Ethereum Trust saw a weekly net outflow of $15.79 million, bringing its historical net outflow to $4 billion. The total net asset value of all Ethereum spot ETFs now stands at $9.981 billion with a net asset ratio of 3.14%. Cumulative inflows have reached $3.154 billion, reflecting robust market demand.

Source: The Block

Strong Ethereum ETF Monthly Inflows

Source: The Block

U.S.-listed Ethereum spot ETFs attracted $393 million in net inflows this month from nine funds. This figure marks a sevenfold increase compared to January. Outflows occurred on only two trading days, showing steady investor support. These trends highlight strong technical factors and market sentiment driving renewed interest in Ethereum.

Bitcoin ETFs and Shifting Investor Sentiment

Eleven Bitcoin ETFs experienced a net outflow of $376 million this month. Inflows were recorded on only four trading days. Bitcoin remains below $100,000 amid volatile memecoin fluctuations. This trend points to a clear shift in investor sentiment away from Bitcoin. Portfolio managers are rebalancing their holdings as funds move toward alternative digital assets like Ether. The data underscores evolving market dynamics and the search for more stable investment opportunities.

Ethereum is set to undergo a major network upgrade called Pectra on April 8, 2025. The upgrade will enhance both execution and consensus layers and is expected to boost overall network performance. 

Vitalik Buterin has proposed a 10x increase in the Layer 1 gas limit to further support growth. "In a predominantly L2 world, considerable scaling remains valuable as it allows simpler and safer application development patterns. This discussion does not advocate for more L1 applications universally but highlights that a ~10x L1 scaling has long-term value," Buterin stated.

In addition, the Ethereum Foundation recently invested $120 million in DeFi projects. These technical improvements and financial moves set the stage for potential gains. 

“ETH is poised for a potential comeback”, said Nick Forster of Derive.xyz. He added, There's currently a 30% likelihood that ETH will surpass $3,000 by the end of the quarter, an increase from last week's 28% probability.

Read more: What Is Ethereum Pectra Upgrade Set to Launch in March 2025?

Source: KuCoin

Ethereum's next upgrade is known as the Prague/Electra upgrade or Pectra. It will bring significant scalability enhancements through sharding technology and Layer-2 rollups. The upgrade will also boost security and stability with advanced cryptography and improvements to the Proof of Stake protocol. The upgrade is scheduled to launch between late 2024 and Q1 2025. Currently, around 28% of ETH's total supply is staked, making this upgrade vital for Ethereum holders.

EIP-7251 will raise the maximum effective balance for validators. This change allows validators to control more stake without running multiple validators. Meanwhile, EIP-4788 will simplify the withdrawal process for staked ETH. This improvement could attract a broader user base. However, the impact on ETH's price remains uncertain. Users should do their own research and make decisions that align with their financial situation.

Investors looking to seize these opportunities can buy ETH on KuCoin. KuCoin offers a secure platform with competitive fees and robust trading tools. It remains a top choice for those who want to add Ethereum to their portfolios in this evolving market.

The crypto market is shifting rapidly as Ethereum spot ETFs post strong inflows while Bitcoin ETFs experience significant outflows. Detailed data reveals $1.61 million net inflows in one week, $393 million in monthly inflows, and a total net asset value of $9.981 billion. Ethereum now trades $2,714.48 and is poised for improvements with the Pectra upgrade on April 8, 2025. Strategic proposals like a 10x gas limit increase and a $120 million DeFi investment drive optimism. Investors are encouraged to explore opportunities and buy ETH on KuCoin as the market evolves. Technical advances and robust numbers define a market ready for change and growth.