Ethereum (ETH) has attracted financial institutions by raising over $5 billion in capital through Exchange-Traded Funds (ETFs). Since November 2024, Ethereum ETFs have been successful in drawing significant capital, indicating growing institutional interest in this digital currency. Ethereum’s scalability and wide financial applications have turned it into a key asset in institutional investment portfolios, potentially surpassing Bitcoin as a top investment tool in 2025. The value of Ethereum ETFs has continuously grown since November 2024, with a noticeable increase in trading volume. In December, trading volume of these funds reached over $1 billion on high-volume days, showcasing financial institutions’ high confidence in this digital currency. Furthermore, the Ethereum Shanghai update allowing for staking of locked ETH has increased institutional participation in staking this digital currency without disrupting network stability, attracting more attention to this platform. Ethereum’s scalability enhancement through layer 2 solutions like Arbitrum and Optimism has also played a significant role in its growth. Additionally, the Ethereum blockchain has become a key platform for tokenizing real-world assets. In comparison, Bitcoin ETFs, with $518 million inflow this month, remain popular, but Ethereum ETFs attracting $5 billion since November 2024 indicate a shift in institutions’ focus towards Ethereum. The diverse applications of this digital currency, including DeFi and tokenized assets, have given it a significant advantage over Bitcoin.
