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Ethereum ETFs Draw Record Inflows as Price Outpaces Bitcoin and Leverage Risks Rise

Record inflows into Ethereum ETFs coincide with a supply squeeze driving ETH to outpace Bitcoin this month

Overview

  • Daily ETF inflows hit record levels, with BlackRock’s iShares ETHA surpassing $10 billion in assets.
  • Spot Ethereum funds have gathered over $5 billion since mid-May after $2.5 billion in their first ten months, signaling accelerating institutional demand.
  • Publicly traded firms such as BitMine Immersion and SharpLink Gaming have amassed multi-billion-dollar ETH treasuries.
  • Altcoin futures open interest surged from $26 billion to $44 billion in July, and Ethereum’s derivatives dominance has overtaken Bitcoin’s for the first time since early 2022.
  • Analysts warn that elevated leverage and a buildup of sell orders could trigger a short-term correction despite supportive regulatory clarity and potential Fed rate cuts.