Ethereum Briefly Tops $4,000 as Institutional Inflows Surge and Staking Prospects Brighten
Ethereum briefly surpasses $4,000 as ETF inflows surge and SEC signals openness to staking-enabled funds.
Ethereum climbed past the $4,000 mark earlier today, reaching its highest point since December 2024 before settling at around $3,956. The rally comes amid accelerating institutional investment and renewed optimism over potential staking features in U.S.-listed Ethereum exchange-traded funds (ETFs).
The second-largest cryptocurrency by market capitalization has risen more than 53% this month and now trades about 18% below its all-time high of $4,878 set in November 2021. Year-to-date, Ethereum is up 20%, according to TradingView data.
Recent inflows into spot Ethereum ETFs have been a major catalyst. Over the past three trading sessions, these funds have attracted consistent capital, with Thursday alone seeing approximately $222 million in net inflows, according to Farside Investors. The surge follows a brief slowdown earlier this month caused by tariff-related market jitters and the absence of a strong market narrative.
BlackRock's iShares Ethereum Trust (ETHA) has been a key driver, now holding over $11 billion worth of ETH. Since its launch just over a year ago, ETHA reached the $10 billion milestone faster than any ETF except BlackRock’s own IBIT and Fidelity’s FBTC. It is currently among the top five funds for net capital inflows over the past week and month.
Corporate adoption of Ethereum is also accelerating. Leading the pack is BitMine Immersion, which holds more than $3 billion in ETH, followed by SharpLink Gaming with roughly $2 billion. Treasury managers across multiple firms appear committed to maintaining or increasing their ETH positions.
Market sentiment received an additional boost from regulatory developments. The U.S. Securities and Exchange Commission (SEC), under pro-innovation Chair Paul Atkins, recently revised its stance on crypto staking. Under the new guidance, staking in proof-of-stake networks is generally not classified as a security, provided certain protocol-level conditions are met.
This shift has revived hopes for Ethereum ETFs that incorporate staking, a feature that would allow investors to earn rewards from their holdings directly within the ETF structure. BlackRock has already filed to add staking to its ETHA fund, a move analysts believe could pave the way for swift SEC approval. “Once BlackRock is on board, SEC approval is likely,” said Nate Geraci, president of the ETF Store.
If granted, staking-enabled ETFs could further differentiate Ethereum from Bitcoin investment products, potentially driving even greater institutional and retail participation in the asset.
