Ethereum hits $4,000, its highest level since December 2024

Key Takeaways

• Ethereum surpassed $4,000, marking its highest level since December due to strong institutional inflows.
• BlackRock's iShares Ethereum Trust (ETHA) rapidly grew to over $11 billion in assets, ranking among the top capital-attracting funds.

Ethereum surged above $4,000 this morning and hit its highest level since December 2024 on the back of strong institutional inflows, according to data from TradingView.

The second-largest crypto asset has jumped more than 53% this month and trades about 18% below its record of $4,878 set in November. It is up 20% year-to-date.

US-listed spot Ethereum ETFs have seen money returning over the past three trading days, with Thursday alone recording about $222 million in net inflows, Farside Investors data shows.

The pace of accumulation among those funds picked up between July 2 and July 31, paused earlier this month amid tariff-driven market uncertainty and a lack of strong narratives, and has resumed this week.

BlackRock’s iShares Ethereum Trust (ETHA) remains a key driver, managing more than $11 billion worth of ETH as of August 7. Launched just over a year ago, ETHA hit the $10 billion milestone faster than any ETF except BlackRock’s IBIT and Fidelity’s FBTC, and currently ranks among the top five funds for capital inflows over the past week and month.

Corporate adoption is also gathering pace. Ethereum treasury leaders show no signs of slowing their accumulation, and new firms are joining in. Tom Lee-led BitMine Immersion tops the list with more than $3 billion in ETH, followed by SharpLink Gaming with around $2 billion.

Ethereum ETFs could soon add staking under new SEC stance

One of the most anticipated narratives the Ethereum community is keeping an eye on is the prospect of SEC approval of staked Ethereum ETFs, which would set these funds apart from their Bitcoin counterparts.

Allowing staking within these funds could lay the groundwork for other crypto ETFs aiming to let investors earn rewards from their investments.

That was indeed what ETF issuers aimed for when they first pursued spot Ethereum ETFs in the US, but the SEC’s previous stance forced them to drop staking from their filings.

Speculation at the time was that this led ARK Invest to withdraw its bid to co-launch a spot Ethereum ETF with 21Shares, as crypto circles believed the product made little sense without staking.

The new SEC leadership under pro-innovation Chair Paul Atkins has removed crypto staking from the securities classification that prevailed under former Chair Gary Gensler. Under the latest SEC guidance, crypto staking is generally not considered a security if it meets certain conditions related to protocol-level participation in proof-of-stake networks.

These changes are enough to convince many crypto enthusiasts that, at some point, the SEC will allow Ethereum ETFs to incorporate staking. And if skeptics need more evidence, BlackRock’s recent filing to add staking to its ETHA fund may be it.

Market observers and ETF experts believe that once BlackRock is on board, SEC approval is likely.

ETF Store President Nate Geraci believes the addition of staking is only a matter of time and could follow soon after the recent green light for in-kind redemption for spot Bitcoin and Ethereum ETFs.