Ethereum ETFs Record $500M Weekly Inflow as Network Prepares for Pectra Update

TLDR

• Ethereum ETFs experienced massive inflows of $500M in one week, representing 16% of all-time net inflows ($3.17B), with BlackRock’s ETHA leading at $3.75B in assets under management
• February 4th marked the third-highest single-day inflow of $307M, coinciding with ETH price recovery from $2,150 to $2,920 after tariff-related market downturn
• ETH currently trades at $2,720, down 27.5% from 2025 peak of $3,750 and 45% below all-time high of $4,890
• Ethereum’s Pectra upgrade is scheduled for Holesky testnet (Feb 24) and Sepolia testnet (March 5), with mainnet launch expected in April 2025
• The upgrade will introduce eight improvements focusing on wallet and validator security, following the successful Dencun upgrade of March 2024

Fresh data reveals a strong uptick in Ethereum ETF investment, with more than $500 million flowing into these funds during the first week of February 2025. This surge represents 16% of all-time net inflows, which now total $3.17 billion since the funds’ launch.

February 4th marked a key moment for Ethereum ETFs, recording the third-highest single-day inflow of $307 million. This follows the December 5th record of $428 million, showing growing investor interest in regulated Ethereum investment products.

BlackRock’s iShares Ethereum Trust (ETHA) currently leads the market with $3.75 billion in assets under management. Grayscale’s Ethereum Trust (ETHE) follows closely with $3.67 billion, while Fidelity’s Ethereum Fund (FETH) holds $1.34 billion.

The recent inflows came during a period of price recovery for Ethereum. After dropping to $2,150 on February 3rd, the price bounced back to $2,920 by February 4th, marking a 36% increase. The cryptocurrency now trades at $2,720 as of February 7th.

This price movement occurred after a temporary reversal of tariffs imposed by President Donald Trump on Canada, Mexico, and China. The original tariff announcement had contributed to market uncertainty and Ethereum’s recent price decline.

Market data shows that Ethereum remains 27.5% below its 2025 peak of $3,750, recorded on January 6th. The current price also sits approximately 45% below the all-time high of $4,890 reached in November 2021.

Investor Ted Pillow highlighted on social media platform X that Ethereum has experienced three capitulation events over the past year – in Q1 2024, Q3 2024, and Q1 2025. Each event was followed by a 90-100% price increase over the following 8 to 12 weeks.

On the technical development front, Ethereum core developers announced plans for the network’s upcoming Pectra upgrade. The update will first launch on the Holesky testnet on February 24th, followed by implementation on the Sepolia testnet on March 5th.

Ethereum had one capitulation candle in Q1 2024, Q3 2024 and Q1 2025.

Last two times, it resulted in a bottom, and $ETH pumped 90%-100% in the next 8-12 weeks.

This time, I think something similar will happen again. Ethereum will melt faces pic.twitter.com/qKnZen8Gcz

— Ted (@TedPillows) February 6, 2025

Tim Beiko, an Ethereum core developer and Ethereum Foundation support lead, shared specific details about the upgrade timeline. The Holesky testnet will fork at slot 3710976, while Sepolia will fork at slot 7118848.

The development team plans to evaluate the Sepolia testnet results during the All Core Developers meeting scheduled for March 6th, 2025. This meeting will determine the final timeline for the mainnet launch, expected in April.

Pectra represents the first major upgrade since March 2024’s Dencun update, which helped reduce layer 2 gas fees. The new upgrade package includes eight key improvements, with a focus on enhancing wallet and validator security.

Two key proposals in the Pectra upgrade, EIP-7702 and EIP-7251, aim to improve security and efficiency for network components. These changes follow the successful implementation of previous upgrades.

Looking ahead, developers have already planned the next network upgrade, called Fusaka, which is scheduled for Q4 2025. This continues Ethereum’s pattern of regular technical improvements.

The combination of strong ETF inflows and upcoming technical upgrades comes as Ethereum faces competition in the smart contract platform space. The network has struggled in recent months, showing weaker performance compared to Bitcoin and other cryptocurrencies.

Recent controversy surrounding the Ethereum Foundation contributed to market pressure, leading to price volatility. However, the recovery in ETF inflows suggests institutional investors maintain interest in the asset.

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