Why Ethereum ETF Inflows Are Unable to Drive ETH Price Higher?

Ethereum ETF inflows have surged over the past few weeks; however, the same hasn’t reflected in ETH price, which continues to flirt around $2,500 levels. The ETH inflows across all US issuers have now reached closer to $4 billion, led by BlackRock’s iShares Ethereum Trust (ETHA). This shows that ETH remains institutions’ favourite, along with on-chain data showing a surge in Ethereum network activity.

Ethereum ETF Inflows Surge But Hedge Funds Go Short

BlackRock iShares Ethereum Trust (ETHA) has witnessed massive inflows amassing a total of $750 million in Ethereum, so far in the month of June. Interestingly, the asset manager hasn’t sold any of its Ethereum holdings, reflecting a strong vote of confidence in the second-largest cryptocurrency. As of now, BlackRock’s ETHA holds a total of 1.677 million ETF, with net assets under management of nearly $4.1 billion.

Citing CME data, market analyst Quinten explains that although Ethereum ETF inflows are surging, the ETH price suppression comes as hedge funds initiate record hedge positions on ETH, via the CME exchange. This dynamic suggests a battle between bullish ETF inflows and bearish derivatives market activity.

As of now, Ethereum price is trading 1.58% up at $2,563. The Coinglass data shows that the 24-hour ETH open interest has surged 4.5% to more than $36.4 billion, with 24-hour liquidations now surging past $30 million.

Ethereum Network Activity Hits New Highs Amid $2,500 ETH Price

Along with Ethereum ETF inflows, blockchain analytics platform Santiment reports that Ethereum’s network utility and growth are reaching unprecedented levels as the cryptocurrency hovers near the $2,500 mark.

According to Santiment, the number of new weekly Ethereum addresses ranges between 800,000 and 1 million—an increase of approximately 33% compared to the same period last year. This surge in new address creation underscores Ethereum’s expanding adoption and ongoing utility in the crypto space.

At the same time, the demand for Ethereum Treasury is growing at this point with Sharplink Gaming becoming the largest ETH holder last week. Recently, Ethereum co-founder Joseph Lubin stated that demand for ETH treasury among corporations will grow as the “Main Street” will use this platform to build “end user apps for consumers and enterprises that go beyond DeFi.”