Ethereum ETFs recorded $460 million in weekly inflows as ETH surpassed $4,200. The rally pushed Vitalik Buterin’s fortune back above $1 billion.
Trump Retirement Plan Order Coincides with Ethereum ETFs Inflow
Ethereum ETFs in the US had net inflows of $460 million this past week as Ethereum price rose past $4200. This is a very large turnaround in crypto investment products, which recorded massive outflows in early August.
The upswing aligns with a new optimism among investors. This was prompted by a new executive order issued by President Donald Trump permitting investments in cryptocurrencies by retirement plans like 401(k)s.
The crypto has also gained more traction as an investment class due to the legitimization coming through the executive directive. Ether ETFs experienced an incredible four days of net inflows, which culminated in $222.34 million this past Friday.
BlackRock’s iShares Ethereum Trust led with inflows reaching $254.73 million. This has confirmed it as the biggest ETH ETF with a total $12.35 billion in assets under management. Fidelity’s Ethereum Fund followed with $132.36 million, while Grayscale’s Ethereum Mini Trust added $38.25 million.
Ethereum ETFs Outpace Bitcoin Funds Amid Price Surge
Grayscale’s ETH Trust also saw $26.84 million in inflows. Other funds, like Bitwise and Invesco’s Ethereum ETFs, recorded smaller gains of $7.83 million and $1.22 million, respectively.
This consistent inflow streak offset earlier losses, including a $465 million withdrawal on Monday, August 4. This resulted in a weekly net inflow of $326.83 million for Ethereum ETFs.
In the meantime, Ethereum price has exceeded $4200. In the last seven days, the ETH gained over 21%, trading at $4,244 as of this report.
This is the first time since last December that ETH has breached $4,000. Analysts explained that the boom is also proof of increased confidence from investors.
The relationship between ETF inflows and the price of ETH shows the increased effects of institutional investment in cryptocurrency. This week also saw Ethereum ETFs surpassing Bitcoin ETFs.
ETH funds purchased $461 million worth of ETH compared to $404 million in Bitcoin, as tracked by on-chain data. This trend points to the increasing role of crypto in the entire finance landscape.
Vitalik Buterin Becomes a Billionaire Again Amid ETH Rally
On-chain data shows that Vitalik Buterin’s portfolio, made up mostly of 240,042 ETH, is now worth $1.04 billion. The 31-year-old co-founder has minor cryptocurrency investments in Aave Ethereum, WhiteRock, Moo Deng, and Wrapped Ethereum.
This will be the first time he is back to being a billionaire after he was one in May 2021 when ETH price was over $3,000. During that period, Buterin held 333,500 ETH, which were worth $1.029 billion.
Despite his wealth, he has stated he never held more than 0.9% of the total ETH supply. Crypto traders are optimistic about Ethereum’s trajectory, with some predicting it could soon reach its all-time high of $4,878, set in November 2021.
Futures data suggests that once the price breaks towards $4,500, a short squeeze would occur, leaving shorts $1.35 billion exposed. Such expectation of a price surge further supports the bullish mood about Ethereum.
Buterin Cautions About Exposure to ETH Through Leverages
Buterin has also warned about the dangers of an increase in Ethereum price. In his recent interview, he cautioned against over-leveraged strategies, specifically the prevalence of firms stockpiling ETH.
He argued that, when poorly handled, such practices might cause the destabilization of the Ethereum ecosystem. He also said it could even cause major disturbances in the market.
However, the ongoing bullish sentiment in the market implies the presence of high investor demand for Ethereum and related financial products. Meanwhile, popular Bitcoin advocate Michael Saylor says he is unfazed by the rising interest of public companies in Ether and other cryptocurrencies.
While speaking during a recent interview, the Strategy executive chairman stressed that Bitcoin remains the dominant digital asset, with most capital flowing into it. He added that Bitcoin dominance stands at 60.18%, and the number of companies holding it has surged from 60 to 160 in six months.
Strategy holds 628,791 BTC, valued at about $74.15 billion, far ahead of competitors. Saylor predicts Bitcoin will outperform the S&P 500 indefinitely, calling it “digital capital.”
His remarks come as Ether trades at $4,224, up 23% in 30 days. The market value of Ether held by public companies has reached $11.77 billion, led by BitMine Immersion Technologies.
