Ethereum Inflows Top $200M After Pectra Upgrade: What’s Next for ETH?

Ethereum had a rough start to 2025. Prices were sluggish. Institutional interest waned. And compared to Bitcoin, ETH was… well, overshadowed.

Fast-forward to this week, and the narrative has shifted dramatically.

According to CoinShares, Ethereum investment products saw $205 million in inflows, a massive leap from the prior week’s $1.5 million. That’s a 13,566% increase in just seven days.

So, what changed?

The answer: The Pectra Upgrade.

This critical network upgrade, rolled out in mid-April, supercharged Ethereum’s staking model and scalability. It raised the max ETH-per-validator cap and streamlined Layer-2 rollup functionality—big wins for institutions that need robust, scalable blockchain infrastructure.

“Ethereum was the standout performer,” said CoinShares Head of Research James Butterfill, noting that despite recent price volatility, ETH’s fundamentals are catching investor attention again.

Institutions Are Circling ETH Again

Let’s break it down:

$205M in ETH fund inflows in one week
Year-to-date inflows into digital asset funds hit $7.4B
Ethereum makes up nearly 30% of this week’s total fund inflows
Meanwhile, Solana funds lost $1M, showing a shift in investor preference

Even though Ethereum’s price dropped to $2,400 (down 4.3% in 24 hours), the strong inflow signals confidence in ETH’s long-term trajectory. Notably, ETH is still up 50% over the last 30 days.

So, what’s behind this renewed confidence?

The Power of the Pectra Upgrade

Ethereum’s Pectra upgrade isn’t just a technical milestone—it’s a signal to institutions that Ethereum is ready for real-world scalability.

Key improvements include:

More ETH per validator: Helps major staking operations consolidate and scale
Rollup-friendly architecture: Vital for Layer-2 integrations like Arbitrum, Optimism, and Base
Improved efficiency + lower costs: Keeps Ethereum competitive as a Web3 powerhouse

“Pectra has made it easier for institutions to integrate staking rewards into their current products,” said Sui Chung, CEO of CF Benchmarks.

This kind of institutional functionality is essential. Ethereum is no longer just a smart contract platform—it’s infrastructure. And Pectra helps ETH speak the language of hedge funds, banks, and ETF issuers.

Staking Momentum Grows—Despite SEC Delays

While staking is a key growth driver, the U.S. SEC has once again delayed a major staking proposal for Ethereum ETFs.

The Grayscale ETH ETF seeks permission to stake Ethereum in its fund—essentially turning the ETF into a yield-generating asset.

So far, the SEC has pushed the decision deadline to June 1.

Still, the fact that such proposals are even being seriously considered is huge. Once staking becomes ETF-compatible, it will open the door to billions in passive ETH yield investment from institutions.

Bitcoin Still Dominates – But ETH Is Closing In

Let’s not ignore the elephant in the room—Bitcoin is still the institutional favorite.

BTC investment funds pulled in $557M last week
Year-to-date BTC flows now sit at $7.2B—almost 10x ETH’s inflows

But this is where context matters.

Ethereum underperformed in Q1 2025. That’s a fact. But smart money often buys weakness, not strength.

“It’s been massively beaten down in price recently,” said Butterfill. “And yet, we’re seeing inflows. That’s encouraging.”

If ETH continues this momentum, we could see a sharp rotation out of BTC and into ETH, especially if macro sentiment softens or BTC corrects.

Ethereum Price Outlook: Where to Next?

Let’s look at Ethereum’s short- and mid-term trajectory based on current momentum.

Key Levels to Watch:

Support: $2,250 (recent bottom), $2,000 (psychological level)
Resistance: $2,600, $2,700, and ultimately $3,000

If Ethereum continues to attract institutional inflows and maintains staking growth, it’s not unrealistic to forecast ETH hitting $3,500–$4,000 in the second half of 2025.

And if the SEC finally approves ETH staking ETFs? All bets are off. That could be the next big catalyst.

Takeaway: ETH Is Quietly Mounting a Comeback

Ethereum is no longer the sleeping giant—it’s slowly waking up.

The Pectra upgrade is a game-changer. Institutions are noticing. And with more cash pouring into ETH than any other altcoin, the market could be setting the stage for a major ETH breakout this year.

If you’ve been sitting on the sidelines waiting for a sign to accumulate Ethereum or look into ETH-related tokens and staking plays—this might be it.