It’s been one year since Ether ETFs officially launched in the United States, and the celebration couldn’t have come at a better time. Marking their anniversary on July 23, the U.S.-based spot Ether ETFs have not only survived the rocky waters of the crypto market — they’ve thrived, now commanding over $16.6 billion in assets under management and locking in an impressive $8.69 billion in net inflows to date.

The U.S. Securities and Exchange Commission (SEC) gave the green light for spot Ether ETFs to trade in July 2024. Since then, major financial players like BlackRock, Fidelity, 21Shares, VanEck, Bitwise, Franklin Templeton, Invesco, and Grayscale have raced into the crypto ETF space with Ethereum-backed products.

And the market is clearly responding. Over the last 14 trading days alone, the funds saw nearly $3.9 billion in continuous inflows — a bullish streak that analysts say may just be the beginning.

“Nearly 1,000 ETFs have launched since these went live, and BlackRock’s Ether ETF leads all of them in inflows,” said Nate Geraci, president of NovaDius Wealth Management, on X. He added that six of the top seven best-ever daily inflows for Ether ETFs happened in just the past two weeks.

Ether ETFs gain serious momentum

The first anniversary was marked with a $332.2 million inflow on July 23 — the seventh-best day in the history of Ether ETFs. Just one week earlier, on July 16, the funds reached a record-breaking single-day inflow of $726.6 million.

That momentum has helped BlackRock’s iShares Ethereum Trust ETF (ETHA) pull in a massive $8.9 billion in net flows, making it the dominant force in the Ether ETF space. In contrast, Grayscale’s Ethereum Trust ETF (ETHE) has faced outflows of around $4.3 billion as its conversion from a trust to an ETF hasn’t been enough to keep investors on board.

“Investors are opting for newer ETFs with lower fees and better NAV tracking,” one analyst told Daily Global Diary. “BlackRock’s dominance just proves institutional confidence is shifting fast.”

Ether still lags behind Bitcoin ETFs

While Ether ETFs have had a stellar year, they’re still in the shadow of their older sibling: Bitcoin ETFs. Approved earlier in 2024, U.S. spot Bitcoin ETFs have raked in nearly $54.5 billion in net inflows, dwarfing Ethereum’s numbers.

Despite this, ETH is trading above $3,600, up 8% over the past 12 months, though still shy of its all-time high near $4,900 set in November 2021. The volatility hasn’t scared off long-term investors, many of whom see Ethereum’s upcoming roadmap — including staking and broader ecosystem growth — as reasons to stay bullish.

Staking could be the next big thing for Ether ETFs

What’s next for Ether ETFs? According to analysts, staking could be the major upgrade that propels the funds into a new growth phase.

The Ethereum blockchain offers rewards for those who lock up their assets to help secure the network — a process known as staking. Several ETF issuers are already pushing the SEC for permission to allow staking within their funds.

Approval could come as early as this month. If it does, it would likely spark another wave of inflows, giving investors access to yield-generating Ethereum exposure directly from regulated financial products.

In fact, the first ETF with staking was launched this month — a Solana-based fund issued by REX Shares and Osprey Funds. If Ethereum ETFs follow suit, it could be a game-changer for passive crypto investors.

In a dramatic legal turn, Pumpfun is being slammed with a $5.5 billion amended class-action lawsuit that accuses the memecoin platform of operating more like a “slot machine cabinet” than a legitimate crypto exchange. The new complaint, filed in the Southern District of New York, puts Pumpfun and key Solana ecosystem players at the center of what plaintiffs are calling a coordinated, high-stakes digital casino built on deception.

According to the filing, Pumpfun’s model mimics a rigged system — where early players win big and dump tokens on unsuspecting newcomers. “There is no underlying product or project,” the lawsuit claims. “Only a fast-moving cycle of buying, dumping, and collapse.”

This latest legal action significantly escalates the accusations originally filed in January 2024. Plaintiffs are now invoking the Racketeer Influenced and Corrupt Organizations Act (RICO), alleging fraud, civil conspiracy, aiding and abetting, and unjust enrichment — legal weapons typically reserved for organized crime.

The defendants include not just Pumpfun’s pseudonymous developer “Bernie” and its parent company Baton Corp., but also major players in the Solana ecosystem — namely Solana Labs, the Solana Foundation, Jito Labs, and the Jito Foundation.

Pumpfun, plaintiffs argue, acted as a front-facing casino-style interface, while Solana-affiliated infrastructure provided the digital venue. The complaint claims these entities profited from validator fees, block space sales, and SOL appreciation — effectively monetizing each memecoin bet.

“The structure mimics a rigged slot machine,” the lawsuit says, “where early players and insiders gain at the expense of later ones.”

But the drama doesn’t stop there.

Just days before the lawsuit was amended, early investors in Pumpfun’s native PUMP token reportedly offloaded over $160 million worth of tokens to exchanges. The dump triggered panic across the memecoin community, with wallets dubbed “PUMP Top Fund 1” and “Top Fund 2” reducing their holdings drastically — one holding just $29.5 million worth of tokens after the move.

Despite an impressive ICO where Pumpfun raised nearly $500 million in just 12 minutes, cracks are clearly forming. BitMEX data suggests nearly 60% of PUMP presale participants have sold or transferred their tokens, indicating a major shift in confidence.

The lawsuit alleges Pumpfun created an illusion of urgency and scarcity using aggressive guerrilla marketing techniques, pushing users to invest in “highly volatile” tokens. It also claims that the liquidity infrastructure offered by Jito Labs enabled sophisticated strategies like Maximum Extractable Value (MEV) to extract profits from memecoin trading.

If the court agrees with the plaintiffs, Pumpfun and its partners could face not only rescission of all transactions — effectively undoing billions in token swaps — but also massive compensatory damages.

Cointelegraph attempted to reach Pumpfun representative Alon Cohen on X (formerly Twitter) but received no response as of publication.

The implications of this lawsuit extend far beyond Pumpfun. If successful, it could shake investor confidence in other memecoin projects and raise red flags for crypto platforms riding hype without substance.

And for Solana — which has become a rising star in the world of fast, low-cost blockchain solutions — the involvement of its core entities like Solana Labs and Solana Foundation in this alleged scheme could cast a long shadow over its future growth.

In an industry often criticized for its lack of regulation, this case may become a landmark. It raises the question: at what point does memecoin fun become financial exploitation?

Pumpfun, once hailed as a bold experiment in on-chain asset creation, now finds itself in a courtroom fight that could define the next chapter of memecoin culture.

In a stunning display of institutional confidence, Spot Ether ETFs have recorded a 13-day inflow streak that’s now pulled in over $4 billion, with a single-day spike of $533 million this week — a surge that’s setting new records and rattling the crypto establishment.

At the center of this financial wave is BlackRock, the global asset management titan whose iShares Ethereum Trust (ETHA) brought in a whopping $426.22 million in a single day. That move alone pushed the fund’s total assets beyond the $10 billion threshold, making it the most dominant player in the Ether ETF arena.

Following closely is Fidelity with its FETH fund drawing in $35 million, contributing to what experts are calling a “massive rebalancing” in the market’s perception of Ethereum.

“Spot Ether ETF inflows have been driven by falling BTC dominance and growing institutional appetite for ETH exposure,” explained Vincent Liu, Chief Investment Officer at Kronos Research, in a recent statement to Cointelegraph.

From Momentum to Mania: How $8.3 Billion Found Its Way Into Ethereum

Cumulatively, all Spot Ether ETFs have attracted over $8.3 billion in net inflows — more than double the $4.25 billion just two weeks ago. The funds now hold $19.85 billion in assets under management (AUM), equivalent to 4.44% of Ethereum’s entire market cap, showcasing how this corner of the market is maturing rapidly.

July 16 marked a historic high, with $726.74 million funneled into Ether ETFs in a single day. July 17 followed with $602 million, making back-to-back milestones that analysts say are only the beginning.

But that’s not all. According to Matt Hougan, Chief Investment Officer at Bitwise Asset Management, investors are still “significantly underweight” on Ethereum compared to Bitcoin.

“Ethereum’s market cap is about 19% that of Bitcoin, but Ethereum ETPs have only 12% of the assets. That gap is likely to close, and quickly,” Hougan said in a post on X.

$20 Billion ETH Demand Incoming?

Hougan went further, projecting that demand for Ethereum from ETPs and corporations holding ETH on their balance sheets could reach $20 billion within a year. At today’s prices, that translates to roughly 5.33 million ETH.

In contrast, Ethereum is expected to issue only 800,000 ETH during that time — meaning demand could outstrip supply by nearly 7x.

“In the short term, the price of everything is set by supply and demand. And for now, there is significantly more demand for ETH than there is new supply. I suspect we go higher,” he noted.

Kraken Withdrawals Add to the Mystery

Adding to the bullish tension, Lookonchain, a popular blockchain analytics platform, reported on Wednesday that five new wallets withdrew a combined 76,987 ETH (worth around $285 million) from Kraken — further pointing to long-term accumulation and a shrinking exchange supply.

“This isn’t random. It’s strategic,” a prominent crypto analyst commented on X, hinting at coordinated institutional activity.

Meanwhile, Bitcoin ETFs Stall

While Ethereum surges, Bitcoin ETFs are showing signs of fatigue. Spot Bitcoin ETFs posted a $67.93 million net outflow on the same day Ether roared, with Bitwise’s BITB and Ark Invest’s ARKB leading the withdrawals at $42.27 million and $33.18 million respectively.

Only Grayscale’s GBTC, the largest legacy Bitcoin fund, saw a modest $7.51 million inflow — a far cry from the massive movements in Ether-based products.

The Bigger Picture: Ethereum’s Utility Is Winning

There’s a growing narrative that Ethereum’s multi-purpose network — which supports smart contracts, NFTs, decentralized finance (DeFi), and staking — is more appealing to institutional investors looking for long-term growth and utility.

“Bitcoin is seen as digital gold, but Ethereum is the foundation of a new internet. That’s why the capital is flowing in this direction now,” said a senior analyst at CoinShares.

This sentiment reflects a fundamental shift in investor mindset. As the regulatory fog clears and more companies incorporate Ethereum-based assets into their portfolios, we may be witnessing the beginning of a new crypto market cycle — one led not by speculation, but by structured investment vehicles like ETFs.

for more news www.DailyGlobalDiary.com