Ethereum ETFs Are Attracting a Lot of Money, But Why Are Prices Flat? Glassnode Reveals What’s Holding ETH Back

Ethereum exchange-traded funds (ETFs) are seeing significant institutional inflows, led by BlackRock and Fidelity, but the surge hasn’t been enough to move the market, according to new data from Glassnode.

Institutional Inflows Rise, But Price Impact Remains Modest
Over the past two weeks, spot ETH ETFs have attracted steady inflows across multiple trading sessions.

BlackRock’s ETHA and Fidelity’s FETH have led the way, with BlackRock’s funds surpassing $4.54 billion in total investment since launch.

Data from SoSoValue shows that Friday alone brought in nearly $92 million in ETH ETFs, $50.45 million in ETHA, and $38.3 million in FETH.

However, Glassnode’s latest Ethereum Market Trends report, conducted in partnership with CME Group, casts doubt on whether this activity will translate into meaningful price action.

ETF Market Share Shrinks as Launch Momentum Fades
The firm claims that Ethereum ETFs will only account for about 1.5% of spot market trading volume by 2025. Ethereum ETFs briefly gained traction in late 2024, with market share peaking at over 2.5%, but momentum has since tapered off, falling to about 1.5% by 2025, according to Glassnode.

Analysts attributed this to weaker market conditions when Ethereum ETFs launched compared to Bitcoin ETFs, which launched during a bull market.

In addition, significant outflows from Grayscale’s ETHE due to its high 2.5% fee weighed on the ETF’s overall performance as investors opted for lower-cost alternatives.

“These factors initially led to weak performance for the Ethereum ETF, with limited AUM growth in the first five months of trading,” Glassnode reported.

ETF Investors Face Losses Due to Slow Pricing
According to Glassnode, the average cost basis for BlackRock’s ETHA is $3,300, while Fidelity’s FETH investors are priced at around $3,500.

With Ethereum currently trading at nearly $2,600, many ETF holders are still sitting on unrealized losses of around 20% or more.

This has traditionally triggered net outflows whenever ETH prices have fallen below this cost threshold, most recently in August 2024 and again in early 2025.

Ethereum ETFs now hold a total of 3.47 million ETH, worth around $9 billion, representing around 2.9% of the total circulating supply.

Meanwhile, Bitcoin ETFs have begun to cool off after a strong month, fueling speculation of a capital flight from BTC to ETH. However, so far, that flight has not significantly changed Ethereum market dynamics.

Why This Matters
While increased ETH ETF inflows signal institutional interest, they currently have limited impact on price or market structure. This disconnect highlights how Ethereum's price is still largely driven by traditional spot trading, rather than ETF demand.