EddieJayonCrypto

 19 May 25

tl;dr

Ethereum investment products saw $205 million in inflows last week, up from $1.5 million the previous week, driven by Ethereum's price rise toward $2,700. Overall, digital asset investment products attracted $785 million, pushing year-to-date inflows above $7.4 billion, the highest point of 2025. De...

Ethereum investment products experienced a notable surge last week, drawing $205 million in inflows, a substantial rise from the previous week's $1.5 million. This influx coincided with Ethereum's price climbing toward $2,700 and followed the recent activation of the Pectra upgrade, which enhanced the network's scaling and staking capabilities, boosting efficiency and positioning Ethereum for better institutional integration.

Overall, digital asset investment products attracted $785 million last week, pushing year-to-date inflows beyond $7.4 billion, the highest level seen in 2025. Bitcoin products led these inflows, pulling in $557 million last week and a commanding $7.2 billion year-to-date, underscoring Bitcoin’s dominant position despite Ethereum's notable performance.

The Pectra upgrade has improved Ethereum's network by enabling more Ethereum to be staked per validator and advancing scaling solutions that keep transaction costs affordable long term. These enhancements are critical as Ethereum ETFs in the U.S. have lagged significantly behind Bitcoin ETFs in inflows—$2.5 billion versus $42 billion—mainly due to challenges integrating staking rewards into Ethereum products.

Staking rewards are integral to Ethereum’s proof-of-stake consensus model, introduced in 2022, allowing users to earn rewards by pledging assets. Pectra aims to bring more operational predictability and infrastructure improvements that will facilitate incorporating staking rewards into institutional products. This development is expected to offer fund managers the traditional finance-like control they need, including clear redemption timelines and reliable liquidity.

Despite short-term price fluctuations—Ethereum dropped to $2,400 amid a 4.3% one-day decrease—it remains up 50% over the last month, with investors continuing to increase exposure. Over five consecutive weeks of inflows, digital asset investment products have demonstrated strong investor confidence, even as the broader market navigates volatility and external pressures.

Overall, Ethereum's recent advancements and growing inflows signal a shift toward more sophisticated institutional adoption, with its Pectra upgrade playing a pivotal role in enhancing staking infrastructure and market appeal.

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