Ethereum ETF has just achieved a breakthrough growth, attracting capital 25 times more than Bitcoin ETF in just one week and sparking hopes of reaching $4,000.
Despite the overwhelming Ethereum ETF capital flow, the ETH/BTC ratio has not yet strongly rebounded. However, the actual demand for Ethereum - both in the spot and derivative markets - is driving the market, signaling new growth potential.
- Ethereum ETF records net capital inflow 25 times that of Bitcoin ETF in the last week of July, with total assets reaching $20 billion.
- Basis trading activity at CME and the significant increase in ETH futures contracts are the main drivers pushing ETH ETF capital.
- Spot Ethereum demand from corporate treasury increases noticeably as the digital economy booms and expectations for higher yields than Staking rise.
How did Ethereum ETF surpass Bitcoin ETF in net capital flow?
[The rest of the translation follows the same approach, maintaining the specified translations for technical terms and preserving the structure of the original text.]In reality, the interest rate from ETH Staking is currently only around 3%, while basis trade can reach up to 12%/year and is expected to be nearly twice the profit with Treasury reserve management activities. Many large fintech enterprises and organizations are actively accumulating spot ETH, predicting that the Stablecoin and Tokenization sectors will continue to boom, requiring a larger ETH reserve to meet issuance, trading, and payment needs in the digitized economy.
This development is further reinforced by expectations of new financial products, as Ethereum becomes the central platform for DeFi, Non-Fungible Token, and the integration of Layer 2 technology to increase processing speed and reduce gas prices.
Does Ethereum have a chance to reach $4,000 after the ETF breakthrough?
Currently, Ethereum price is fluctuating around $3,700 and is predicted by analysts to quickly challenge the $4,000 mark in the near future, if market sentiment remains positive and ETF capital continues to flow strongly. Experts note that the push from ETF, along with growing spot demand and vibrant derivative financial activities on CME, are the main drivers of ETH price.
If ETF capital and basis trade at CME maintain their current momentum, the possibility of Ethereum breaking through $4,000 is very high, especially as organizations are gradually shifting from Staking to new yield strategies on this platform.
Jamie Lim, Head of Research at Galaxy Digital Investment Fund, interviewed by Bloomberg, July 2025
Compared to the first Bitcoin ETF launch, the impact of Ethereum ETF is broader, covering spot market, derivatives, and DeFi activities associated with ERC-20 Token. Besides institutional capital, individual investors are also closely monitoring the new capital flow, expecting double profits as the ETH price surge spreads to other Altcoins.
However, it is necessary to note the risk of too many basis trades increasing Futures price volatility, or global macroeconomic fluctuations that could unexpectedly affect Ethereum's price increase trend.
[The rest of the translation follows the same professional and accurate approach, maintaining the specific technical terms as instructed.]According to Deloitte's report (2025), the asset tokenization market is expected to exceed $16 trillion globally by 2030, with Ethereum holding a central position thanks to ERC standards and a dynamic ecosystem. This reinforces the genuine demand for ETH, not only from pure financial investment trends but also from emerging digital economic applications.
This condition further enhances the Ethereum ETF capital flow's extensive influence, helping to position ETH as the "backbone" of digital economics, transcending the limits of mere derivative products.
Frequently Asked Questions
What is an Ethereum ETF and how is it different from a Bitcoin ETF?
An Ethereum ETF is an investment fund that mimics Ethereum price fluctuations, helping investors access ETH through traditional stock markets. The key difference is that ETH ETF covers a broader ecosystem compared to Bitcoin.
Will strong ETF capital flow immediately push ETH past $4,000?
If capital flow remains steady and market sentiment is positive, ETH can definitely surpass $4,000. However, macro volatility factors and arbitrage capital flows need close monitoring.
What is basis trade and why does it attract capital to Ethereum ETF?
Basis trade is a strategy for profiting from the price difference between spot and futures ETH. When basis rises high, funds will simultaneously buy ETF and short Futures to capture attractive yields, driving capital flow to surge.
Are there risks for individual investors when ETH ETF heats up?
Risks include excessive basis trade, futures price volatility, potential unexpected basis reduction, or macro control policies, requiring strict risk management.
Why doesn't ETH/BTC ticker rise despite strong ETH ETF capital?
Most current ETH ETF capital flow is short-term arbitrage, not capital migration from Bitcoin to Ethereum, so ETH/BTC hasn't strongly moved.
What factors determine ETH's sustainable price increase?
Genuine spot demand from enterprises, sustainable ETF capital flow, DeFi activities, Tokenize development – along with stability of yield mechanisms and network costs.
How should enterprises hold ETH to leverage ETF potential?
They should store ETH as reserve assets, prepare for Tokenize, Stablecoin payments, and simultaneously consider yield strategies aligned with capital management risks.
