Effect of Listing Ethereum Exchange-Traded Funds on ETH Value
In the world of cryptocurrency, Ethereum ETFs are making headlines with their impressive growth and increasing institutional adoption. July 2025 has been a particularly noteworthy month for these exchange-traded funds (ETFs), with significant inflows and a rise in assets under management (AUM).
On July 21, 2025, Ethereum ETFs saw cumulative inflows of $7.79 billion, net AUM of $19.06 billion, and Ethereum's price was approximately $3,582. Just a day later, on July 22, the figures rose to $8.32 billion in cumulative inflows, $19.85 billion in net AUM, and Ethereum's price hovered around $3,670. These figures represent a marked increase from July 16, when Ethereum ETFs had cumulative inflows of $6.49 billion, net AUM of $16.27 billion, and Ethereum's price was approximately $3,210.
This surge in inflows has been a driving force behind Ethereum ETFs' growing popularity. In fact, Ethereum ETFs absorbed more than $4.4 billion in July 2025 alone, exceeding the entire previous 12 months' inflows. This rapid growth has been particularly notable given that Ethereum ETFs only officially launched in early July 2024.
A major factor contributing to this growth is the expectation that Ethereum ETFs will integrate staking yield. Nasdaq has filed a proposal with the SEC to allow BlackRock’s Ethereum ETF (ETHA) to participate in Ethereum staking, which would enable the fund to stake a portion of its ETH holdings, earn staking rewards typically around 3–4% annualized, and pass those yields directly to investors. This transition would transform the ETF from a simple price-exposure product into a yield-generating asset, akin to dividend-paying stocks, significantly enhancing its appeal to institutional investors seeking income as well as appreciation.
Regulatory developments have also played a role in the growth of Ethereum ETFs. The SEC has clarified that proof-of-stake validation services (staking rewards) are considered a form of income, not a new security issuance. This regulatory stance clears a path for ETFs to incorporate staking without triggering new securities laws. However, as of late July 2025, U.S. Ethereum ETFs have not yet fully enabled staking functionality. Approval for yield-generating staking ETFs is still pending, and market analysts suggest that regulatory approval could lead to sustained inflows and further tightening of tradable ETH supply.
BlackRock’s iShares Ethereum Trust (ETHA) dominates this landscape, holding approximately 2.8 million ETH valued at over $10 billion, making it the third-fastest ETF to reach $10 billion in assets under management. Despite this rapid growth, institutional crypto experts believe Ethereum remains underrepresented in ETF portfolios relative to its market weight, with an estimated $7–8 billion additional inflows needed to align Ethereum ETF exposure with its market capitalization.
The outlook for Ethereum ETFs is highly positive, with strong institutional inflows and momentum fueled by the potential integration of staking rewards in regulated ETF products. The regulatory environment is evolving favorably, but staking-enabled Ethereum ETFs are not yet fully live. Approval and implementation of staking within ETFs would likely accelerate institutional adoption further and enhance Ethereum’s investment appeal relative to Bitcoin and other assets.
Bitcoin and Solana, like Ethereum, have also been attracting investments due to the growing interest in cryptocurrencies. In recent data from leading cryptocurrency exchanges, Bitcoin saw a 5% increase in trading volume, while Solana's price surged by 20% during the same period.
Investors are keeping a close eye on other cryptocurrency exchanges as well, as they await announcements regarding potential Ethereum ETFs or the implementation of staking rewards for existing ETFs. Such developments could impact the liquidity and attractiveness of these assets in the finance world.
The integration of staking rewards in regulated Ethereum ETFs could also influence the decision-making process of investors interested in diversifying their portfolios beyond Bitcoin and Ethereum, potentially leading to increased investment in other promising cryptocurrencies like Solana.
