The latest statistics show that on Monday, U.S. spot Ethereum ETFs (exchange-traded funds) recorded their largest single-day net inflow in history, totaling $1.01 billion.

Among them, the Ethereum ETF issued by BlackRock attracted the largest inflow, setting a record with a net inflow of $640 million. Fidelity's Ethereum ETF ranked second in net inflows, reaching $277 million.

In July, the price of Ethereum surged by over 50%, and this month it has risen by more than 16%. Nate Geraci, president of wealth management firm NovaDius, stated that Ethereum ETFs were previously severely undervalued because institutional investors did not understand Ethereum. Now, institutional investors are enthusiastic about Ethereum and tout it as a pillar of future financial markets.

Since May, the net inflows into spot Ethereum ETFs have exceeded $8 billion. Including Monday's inflows, the cumulative net inflows for this type of ETF have surpassed $10 billion, reaching $10.83 billion.

Cryptocurrency investor Anthony Sassano pointed out that since Ethereum switched from a Proof-of-Work (PoW) consensus mechanism to Proof-of-Stake (PoS) at the end of 2022, Ethereum ETFs have purchased over 50% of Ethereum.

With the U.S. successively introducing policies favorable to cryptocurrencies, the crypto market has been booming this year. Ethereum, in particular, has been one of the best-performing tokens in the crypto market. Institutional investors believe that as traditional financial markets increasingly accept Ethereum, the token's price will continue to rise rapidly.

The record inflows come at a time when market sentiment toward Ethereum is bullish. According to Glassnode data, the amount of Ethereum held on exchanges fell to a nine-year low last Thursday, dropping to 15.28 million, the lowest level since November 2016.

Investors withdrawing crypto assets from exchanges is often seen as a bullish signal, as it suggests they may be moving them for long-term holding in anticipation of higher prices.

Nick Ruck, head of LVRG Research, stated that investors are increasingly recognizing Ethereum's value as a store of value and as a foundational layer for decentralized finance and Web3 innovation. This demand reflects growing institutional confidence in Ethereum.

However, some industry insiders have warned that the recent price surge could lead to short-term traders taking profits. Ethereum co-founder Vitalik Buterin said last Thursday that the recent trend of companies purchasing Ethereum as a reserve asset could turn into a dangerous over-leveraged game.