Ether ETFs draw $1.42 billion as staking nears approval

Ether exchange-traded funds recorded nine straight sessions of net inflows totaling $1.42 billion, narrowing their gap with comparable Bitcoin products as Fidelity moves to add staking to its fund.

BlackRock's Ethereum fund accounted for the reported inflows during the nine-session stretch, according to fund flow data. The concentration shows how demand for regulated Ether exposure remains concentrated among a few large issuers.

Fidelity filed an amendment that would allow its Ethereum fund to stake as much as 100 percent of its ether holdings once the registration becomes effective, subject to liquidity needs for redemptions and expenses. The proposed structure would retain 85 percent of gross staking rewards for the fund, with the rest allocated among the sponsor, custodians and node operators. Net rewards could be distributed in cash quarterly, although the filing makes clear that payouts would not be guaranteed.

The staking addition matters because spot Ether ETFs initially gave investors price exposure without access to the protocol's native staking return. If staking becomes operationally viable inside major funds, ETH products could look more competitive with direct holding for investors who prioritize income alongside price appreciation.

Bank of America has increased exposure to Bitcoin, Ethereum, XRP and Solana ETFs, with reported holdings across Bitcoin, Ethereum and XRP products nearing $94 million, while reducing its stake in several crypto-linked equities. Goldman Sachs has also taken a cautiously constructive view of the sector's second-half outlook, despite lower trading volumes, and has reportedly added to crypto ETF positions. Its preference for selected exchange and brokerage stocks alongside ETFs points to a more diversified approach than a straightforward bet on token prices.

The buying streak arrives even as spot-market activity has offered a less emphatic signal, leaving investors to weigh institutional allocations against softer trading conditions. The divergence between ETF flows and spot volumes suggests that larger investors are continuing to build ETH exposure through regulated vehicles rather than directly through token markets.

Staking Could Reshape the ETF Calculus

The Fidelity amendment represents the next structural shift for the still-young Ether ETF market. Spot Ether ETFs launched without staking capabilities, a significant gap compared with direct holding, where ETH holders can earn yield by participating in the network's proof-of-stake consensus. If staking is approved for major funds, the yield component could attract a new class of income-focused institutional investors.

The regulatory path remains uncertain. The SEC has not yet approved staking within ETF structures, and the Fidelity amendment is subject to registration effectiveness. However, the filing itself shows that issuers see demand for yield-bearing Ether products.

The combination of sustained ETF inflows and the potential for staking yield could strengthen Ethereum's position as the primary institutional crypto asset after Bitcoin. With Bank of America and Goldman Sachs both expanding crypto ETF exposure, the flow picture suggests Wall Street is treating digital assets as a permanent allocation rather than a speculative trade.

This article is for informational purposes only and does not constitute investment advice.