Key Takeaways:
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Institutional sentiment is shifting towards ETH as elite funds reallocate capital from Bitcoin to Ether ETFs.
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BlackRock's ETH ETF pairs secure staking with a low 0.25% fee, representing an enormous win for mainstream crypto access.
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Dominance within the $20 billion real asset sector proves that big money is prioritizing network security over low gas fees.
Ether (ETH) has didn’t reclaim $2,500 since January 31, leading traders to wonder what could spark sustained bullish momentum. Investors are waiting for clear signs of a positive shift in sentiment; Meanwhile, three separate events could signal the top of the bear cycle, which bottomed at $1,744 on February sixth.
Daily net inflows of US-listed Ether spot ETFs, USD. Source: CoinGlass
At first glance, the $327 million in net outflows from spot Ether exchange-traded ETFs in February is barely concerning. The apparent lack of institutional interest while ETH is 60% below its all-time high could possibly be seen as a insecurity within the $1,800 support level. However, these outflows represent lower than 3% of Ether ETFs’ total assets under management.
The Ether ETF’s recent milestones could push the value of ETH higher
While investors are currently almost exclusively focused on short-term flows, the magnitude of recent developments in Ether ETFs will ultimately have a positive impact on the value of ETH. In declining markets, positive news is usually ignored or downplayed, but strategic moves by the world's largest asset managers can quickly change investors' perceptions of risk.
Recent Securities and Exchange Commission filings revealed on Monday that the Harvard Endowment Fund built an $87 million position in BlackRock's iShares Ethereum Trust in the ultimate quarter of 2025. Interestingly, this vote of confidence got here when Harvard reduced its holdings within the iShares Bitcoin Trust to $266 million from $443 million in September 2025.
Latest notable changes in iShares Ethereum Trust ETF holdings. Source: Marketbeat
In parallel, BlackRock amended its Staked Ethereum ETF proposal on Tuesday to retain 18% of total staking rewards as service fees. While some market participants criticized the high fee, the ETF sponsor must compensate intermediaries akin to Coinbase for the staking services. Additionally, the relatively low expense ratio of 0.25% stays a net positive for the industry.
The latest evidence pointing to increasing institutional adoption is the tokenization of real-world assets (RWA), a segment whose assets have exceeded $20 billion. Ethereum is absolutely the market leader and hosts offerings from BlackRock, JPMorgan Chase, Fidelity and Franklin Templeton. This intersection between blockchain applications and traditional finance could spark sustained demand for ETH.
Total on-chain RWA market cap, USD. Source: DefiLlama
Nearly half of the $13 billion in RWA deposits on Ethereum represent tokenized gold, although investments in U.S. Treasuries, bonds and money market funds rose to a powerful $5.2 billion. In comparison, the combined RWA quotes on BNB Chain and Solana stand at $4.2 billion, a powerful indicator that institutional money is becoming less concerned with fees and more focused on security.
Although RWA issuers are currently focused on closed systems that leverage exclusive decentralized finance pools or their very own Layer 2 networks, intermediaries will eventually find ways to connect with the broader Ethereum ecosystem. Crypto enterprise capital firm Dragonfly Capital’s recent $650 million funding round signals strong interest in tokenized stocks and personal credit offerings.
Instead of supporting Layer 1 blockchains and consumer-facing applications, investors are directing their capital towards RWA infrastructure, institutional custody and trading platforms, a transparent sign of market maturity. Although it’s difficult to predict how long it is going to take for these shifts to affect the value of Ether, these events clearly suggest that a recovery to $2,500 is feasible within the near term.
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