Ethereum, the world’s second-largest cryptocurrency, has just achieved another major milestone—surpassing the market valuation of Bank of America. This comes as inflows into spot Ether exchange-traded funds (ETFs) skyrocket, further highlighting Ethereum’s growing relevance in the world of institutional finance.
A Billion-Dollar Comeback
Ethereum’s market cap has ballooned to an impressive $327 billion, placing it ahead of financial heavyweights like Bank of America, as well as global consumer brands like Nestlé and Alibaba. This rally reflects a broader resurgence in the crypto market, with Ethereum climbing from the depths of $1,800 to around $2,700 in just over two weeks—a gain of $100 billion in market value.
This swift rise has positioned Ethereum as the 31st most valuable asset in the world, based on rankings by CompaniesMarketCap. It’s worth noting that Ethereum isn’t alone in this trajectory—Bitcoin, the industry leader, recently leapfrogged Amazon to claim the fifth spot among global assets.
Ether ETFs Ignite Institutional Interest
While price action has been dramatic, the underlying catalyst appears to be renewed institutional interest—particularly through spot Ether ETFs. For the first time in over a month, inflows into these financial products have exceeded the $100 million mark in a single day.
According to data from Farside Investors, Thursday was particularly strong for Ether ETFs. Grayscale’s Ether ETF led the way with $43.7 million in new capital, followed closely by Fidelity’s FETH product, which attracted $42.2 million. Meanwhile, the Grayscale mini-Ether ETF also contributed a solid $18.7 million. Altogether, the daily inflows hit $110.54 million—signaling a serious uptick in demand from both retail and institutional players.
Year-to-Date Growth Paints a Bullish Picture
Looking at the broader picture, year-to-date (YTD) data suggests that interest in ETH ETFs has grown by nearly 49%. With several trading days left in May, the monthly inflows have already surpassed January’s previous record. This momentum could translate into further price strength and even greater market penetration for Ethereum-backed financial products.
Regulatory Shadows Loom
Despite the celebratory mood, there’s a regulatory caveat worth mentioning. Just yesterday, the U.S. Securities and Exchange Commission (SEC) opted to delay its decision on the staking-based Ether ETF application submitted by 21Shares. This development underscores the cautious stance regulators are still taking toward crypto products, particularly those tied to staking, which may carry additional legal and compliance risks.
Still, it’s important to note that Ethereum Futures ETFs remain active on the CME (Chicago Mercantile Exchange), offering traders an alternative pathway to gain exposure to ETH without directly holding the asset.
The Bigger Picture
Ethereum’s recent triumph over institutions like Bank of America is more than just a bragging right—it’s a signal that decentralized technologies are maturing into credible, investable assets. As Ethereum continues to prove its utility—from powering decentralized applications to serving as the foundation for much of the Web3 ecosystem—its increasing adoption by institutional players is not just likely, but inevitable.
With the ETF inflows rising and its global standing improving, Ethereum may be preparing for a new era—one where it’s not just a tech experiment or a speculative asset, but a mainstay in the portfolios of serious investors.
