ETH investment products recorded the strongest 6-week consecutive inflow since December 2024. These inflows brought cryptocurrency inflows to $286 million last week.
New capital raised the total inflow over 7 weeks to $10.9 billion. This is an optimistic signal from investors despite US macroeconomic uncertainty and regulatory tensions.
ETH Dominates Cryptocurrency Inflows
According to the latest CoinShares report, ETH accounted for $321 million of cryptocurrency inflows last week. This allowed the second-largest altcoin by market capitalization to achieve its largest single-week rise in 2025.
This occurred amid increasing investor confidence in the smart contract giant. This momentum followed 6 consecutive weeks of $11.9 billion in inflows.
While ETH was surging, Bitcoin's path was shaky. The pioneering cryptocurrency showed strong inflows early in the week, but sentiment changed after a federal court ruled tariffs illegal, causing macroeconomic volatility.
"The president's claim of immediate tariff decision authority has no time or scope limitations, exceeding the tariff powers delegated to the president under IEEPA," the judges determined.
Bitcoin products closed the weekend with $8 million in outflows. This is the first decrease after 6 weeks of inflows that brought $9.6 billion. Other altcoins showed mixed results. XRP experienced 2 consecutive weeks of outflows, losing $28.2 million.
According to Butterfield, this suggests the investor narrative is weakening amid ongoing regulatory uncertainty.
Regionally, the US remains the largest contributor with $199 million in inflows. However, market interest is clearly diversifying. Hong Kong recorded its strongest $54.8 million inflow since launching exchange-traded products (ETP) a year ago.
Despite impressive consecutive inflows, the total AUM of cryptocurrency investment products decreased to $17.7 billion. This represents a correction from a peak of $18.7 billion, citing short-term price weakness of major tokens in the CoinShares report.
Notably, last week's inflows followed a record period. Two weeks ago, cryptocurrency inflows reached $3.3 billion, marking the annual high. According to BeInCrypto, this occurred amid concerns about US market vulnerability after Moody's downgraded the US credit outlook.
ETH Reaches Highest Record Since 2024... Petra Momentum and ETF Expectations
Optimism could remain high following the successful Ethereum Petra upgrade in May, which improved staking efficiency and long-term scalability.
BeInCrypto recently reported that the Petra upgrade led ETH to attract $205 million in inflows during the week of May 17th. The fork triggered a sentiment change.
"ETH showed prominent performance with $205 million inflows last week and $575 million year-to-date. This reflects investor optimism after the successful Petra upgrade and the appointment of new co-director Thomas Stanchak," Butterfield wrote at the time.
Institutional interest also appears to be increasing. Reports suggest BlackRock is preparing to pressure the SEC to approve a spot ETH staking ETF within two weeks.
"BlackRock is reportedly pressuring the SEC to approve an ETH staking ETF within two weeks. If approved, Ethereum could immediately move to $12,000," mentioned cryptocurrency trader and founder Coinvo.
These developments could significantly boost mainstream adoption. Adding fuel to ETH's strength narrative is the declining exchange supply. On-chain data shows Ethereum exchange balances are at their lowest in 7 years.
"An ETH supply shock is approaching. Ethereum's exchange balances are collapsing and are currently at their lowest in 7 years," noted Coin Bureau.
This suggests liquid supply is decreasing as long-term holders accumulate.
With ETH leading inflows, increasing institutional interest, and exchange supply diminishing, the situation suggests a potential breakout scenario. However, this may depend on regulatory tailwinds aligning.
