Ethereum ETF Inflows Surge as S&P Excludes Bitcoin and XRP

U.S. spot Ethereum ETFs recorded their strongest daily net inflows in 10 months on Thursday, pulling in $225.8 million and narrowing the gap with Bitcoin funds to just $16.5 million [2]. This surge coincides with a shift in institutional benchmarking, as S&P Dow Jones Indices launched a new crypto index that excludes both Bitcoin and XRP for failing to meet revenue-sharing criteria [1].

Institutional flows and market positioning

The $225.8 million inflow into Ethereum ETFs marks the largest single-day total since October 28, 2025, extending a nine-day streak of net buying that has totaled $1.42 billion [2]. BlackRock’s ETHA fund has been the primary driver, accounting for $1.02 billion of that total and recording net purchases every day during the nine-session run [2]. According to Max Shannon of Bitwise Europe, these flows are likely fueled by an increase in cross-asset risk appetite in traditional markets [2].

Despite the momentum, Ethereum is currently trading around its 200-week moving average, a technical level that analysts view as critical for short-to-medium-term stability [2]. While Ethereum has seen recent inflows, spot volume across the market has softened to its 16th percentile year-on-year since the broader crypto rally began on August 19 [2].

S&P index exclusion criteria

The exclusion of Bitcoin and XRP from the new S&P Pantera Digital Asset Index highlights a divergence between market capitalization and revenue-generating utility [1]. The index requires protocols to earn revenue and distribute a portion of that value to token holders—a standard modeled after traditional finance [1]. S&P determined that Bitcoin’s transaction fees primarily benefit miners, while XRP’s ledger burn mechanism is too small to meet the index's annual revenue thresholds [1].

While Bitcoin’s exclusion aligns with its "digital gold" narrative, which does not rely on dividend-like payments, the omission of XRP challenges its utility-based value proposition [1]. Neither asset reacted significantly to the news, as both remain largely influenced by geopolitical tensions between the U.S. and Iran rather than the new benchmark [1].

What to watch

• Ethereum 200-week moving average: Analysts are monitoring whether Ethereum can hold this support level, noting that approximately 1.1 million ETH were acquired near this price point and could act as resistance if those holders sell into strength [2].
• Spot volume trends: Market participants are looking for a pick-up in spot trading volume, which remains at low year-on-year percentiles, to confirm if the current ETF-driven momentum is sustainable [2].
• Index rebalancing: S&P plans to rebalance the Pantera Digital Asset Index quarterly, which will adjust the weightings of the 18 included tokens based on changes in their market value [1].

The divergence between the surging institutional interest in Ethereum ETFs and the exclusion of Bitcoin and XRP from revenue-focused indices underscores a growing divide in how different market participants define value. Whether this institutional focus on "revenue-generating" protocols will influence broader market sentiment remains an open question for the coming quarter.