Ether Registers 2025 High Amid Record ETF Inflows And Stablecoin Boom. Tom Lee Predicts $15K ETH By Year-End

Ether (ETH), the second-largest cryptocurrency by market capitalization, hit its highest valuation of the year on Monday, following increased institutional interest stemming from the growing number of companies buying up the digital coin for their treasuries and US Spot Ether exchange-traded funds (ETFs) seeing record capital inflows.

The price of ETH reached $3,786 after rising 26% over the past week. The native cryptocurrency of the Ethereum blockchain last traded this high back in December 2024. However, it is still 22% below its all-time high of $4,878 that it touched during the height of the 2021 bull run. While Bitcoin (BTC) managed to register multiple peaks since then, coming close to $123,000 just last week, Ether is yet to top its previous record.

US Spot Ether ETFs Record Largest Daily Inflow to Date, Attracts $2.12 Billion in Weekly Inflows

Inflows into global Bitcoin and Ethereum ETFs hit an all-time high last week, but surprisingly, it wasn’t BTC that saw the most inflows. Both the top cryptos were practically neck and neck as investors raced to chase healthier returns, with spot Bitcoin ETFs achieving nearly $2.2 billion in weekly flows, while the spot Ether ETFs attracted $2.12 billion during the same period. According to a new report from CoinShares, Ether “stole the show” as institutional demand for the #2 cryptocurrency skyrocketed after solid price gains in recent weeks.

The $2.12 billion influx in the week ending July 19 is huge, considering that the year-to-date inflow total for the funds stands at about $6.2 billion. It is also almost double the previous weekly inflow record of $1.2 billion. The products also had their best trading day in history on Wednesday, when they received over $726 million in net inflows.

This inflow surge comes following a sluggish debut for spot Ether ETFs last summer. At the time, crypto trading platform Wintermute published a report warning that the absence of a staking mechanism for the funds may diminish their appeal to investors.

Recently, BlackRock, issuer of the iShares Ethereum Trust ETF (ETHA) – the largest Ether ETF with $8.4 billion in assets under management (AUM) – filed with the US Securities and Exchange Commission (SEC) to amend its product to include staking, which would allow investors to earn yield by participating in the Ethereum network’s proof-of-stake (PoS) consensus. If approved, ETHA could become the first US Ether ETF to offer staking rewards, providing shareholders with additional income alongside price exposure.

The SEC released updated guidelines for crypto assets in May, classifying staking rewards as earned income, making the feature more feasible for traditional finance players. The filing submitted by Nasdaq Exchange on behalf of BlackRock is yet to be approved by the regulator.

The performance of the ETFs also underlines the role institutional inflows are playing in uplifting the price of Bitcoin and Ether. ETH Open interest (OI), which refers to the number of contracts betting on the future price of the asset yet to be settled by traders, also hit new highs, as it currently stands at over $56 billion.

FundStrat’s Tom Lee Predicts Ethereum to Surpass All-Time High and Surge to $15K by 2026 as Stablecoin Demand Heats Up

Meanwhile, Tom Lee, managing partner and head of research at financial services firm FundStrat Global, expects Ethereum’s price to hit $4,000 by the end of the month and rise to an ambitious $15,000 before the end of the year. His outlandish projection is tied to increasing global adoption of fiat-backed stablecoins and a positive shift in market sentiment towards ETH.

The price of ETH has risen over 50% in July, reversing its losses from earlier in the year. Lee believes that the upward trend aligns with growing optimism about the blockchain’s use in real-world financial applications, with market participants seeing it as the foundation for stablecoins and other tokenized assets.

Lee’s outlook also reflects the renewed attention from institutional investors that is accelerating Ethereum’s market growth. Recent developments surrounding stablecoin regulation, like President Donald Trump signing the GENIUS Act into law last week, could result in financial institutions such as banks issuing their own dollar-pegged stablecoins. Meanwhile, USDC issuer Circle Internet Group’s public offering of CRCL shares has fueled more stablecoin excitement for Wall Street firms.

According to the analyst, these updates will reflect in the price of ETH as stablecoin demand continues to rise. The stablecoin market is projected to grow from its current valuation of $250 billion to $2 trillion by 2030. Lee sees this as a structural driver that will sustain Ethereum’s price growth in the long term as he believes the blockchain will be the first choice for tokenized assets.

He considers the $5,000 level a technical milestone for Ether as it is above the cryptocurrency’s current peak. While highlighting Ethereum’s growing demand, Lee continues to view Bitcoin as “digital gold” and a trusted store of value for long-term holding that could reach $1 million in the near future.

At the time of writing, Ether (ETH) is trading at $3,664, down 2.74% in the last 24 hours.