- Ethereum surged above $3,300 after spot ETH ETFs recorded a record $726 million in daily net inflows.
- Analysts say growing institutional demand and strong fundamentals are driving the rally.
Ethereum has surged past the $3,300 mark for the first time since January, buoyed by a historic wave of institutional investment. The price rally comes on the back of spot Ethereum exchange-traded funds (ETFs) recording their highest-ever daily net inflows of $726 million, signaling strong confidence from major investors.
Record ETF Inflows Fuel Ethereum Ascent
On Wednesday, nine spot Ethereum ETFs collectively pulled in $726.74 million, led by BlackRock’s ETHA fund, which alone attracted $499 million. Eight out of the nine ETFs saw positive flows, according to SoSoValue. This sharp influx pushed Ethereum’s price up by 7.4% in just 24 hours, reaching a peak of $3,416 before settling around $3,342.
So far in July, net inflows into Ethereum ETFs have hit $2.27 billion — the highest monthly total since these funds launched in July 2024. Analysts say institutional investors are beginning to view Ethereum as a long-term asset rather than just a trading tool.
“Ethereum is increasingly being seen as a long-term institutional asset, not just a trading vehicle,” said Rachael Lucas, crypto analyst at BTC Markets. She added that ETH ETFs now collectively hold about 4% of Ethereum’s total market cap.
Corporate Buyers and Strong Fundamentals Boost Optimism
Beyond ETFs, public companies are also joining the Ethereum’s movement. SharpLink Gaming, backed by Consensys, has become the largest known corporate holder of Ethereum, recently increasing its holdings to 280,706 ETH — even surpassing the Ethereum Foundation.
“Demand is rising, and ETH is still seen as undervalued,” said LVRG Research’s Nick Ruck. He pointed to strong fundamentals, capped supply growth, and bullish technical setups as factors supporting further gains. “We’re optimistic that ETH can surpass its previous all-time high of $4,600.”
Altcoins Follow Suit as Bitcoin Dominance Slips
Ethereum’s rally is sparking renewed interest in altcoins. XRP climbed 5% to $3.05, solana rose 5.16% to $170.96, and BNB added 3.44% to hit $710. Meanwhile, bitcoin rose just 0.71% to $118,395, with its market dominance falling to 63.09%.
According to Lucas, this drop in bitcoin dominance often signals the start of an altcoin cycle — one that could further benefit Ethereum as capital rotates across the crypto market.