BlackRock’s Ethereum ETF Draws $900M Quickly

Posted by BH NEWS 3 months ago

BlackRock, the world’s leading asset management firm, saw its spot Ethereum ETF, iShares Ethereum Trust (ETHA), amass nearly $900 million in inflows within just 11 trading days. Launched on July 23, the fund accumulated a total of $869.8 million, including $109.9 million on August 6 alone.

Contents hide
1 Which Factors Influenced the Massive Inflows?
2 What is the Current Status of Other Ethereum ETFs?
3 Key Takeaways for Investors

Which Factors Influenced the Massive Inflows?

August 6 marked the third largest day of inflows for ETHA, according to Farside Investors. Investors seized the opportunity to buy in after Ethereum’s (ETH) price dip on August 5, driving the ETF’s inflows to top-performing levels. This achievement ranked BlackRock’s spot Ethereum ETF among the top six best-performing ETFs launched in 2024.

Nate Geraci, President of ETF Store, noted that four of the other top five ETFs were spot Bitcoin ETFs, including BlackRock’s own IBIT ETF. He also mentioned that ETHA benefited from $47.1 million in investments following the “Black Monday” event in the cryptocurrency market.

What is the Current Status of Other Ethereum ETFs?

On August 6, spot Ethereum ETFs collectively had their best day since their launch, with $98.4 million in inflows. Fidelity’s spot Ethereum ETF came in second with $22.5 million, while Grayscale Ethereum Mini Trust and Franklin Ethereum ETFs saw $4.7 million and $1 million in inflows, respectively. In contrast, Grayscale’s high-fee Ethereum product, ETHE, experienced $39.7 million in outflows.

Key Takeaways for Investors

  • ETHA’s rapid accumulation of $900 million demonstrates strong investor interest in Ethereum ETFs.
  • Fluctuations in Ethereum’s price can significantly influence ETF inflows.
  • Fidelity and other major firms are also competing strongly in the Ethereum ETF space.
  • Grayscale’s ETHE saw significant outflows, contrasting with the general trend.

Despite the positive start for ETHA, spot Ethereum ETFs collectively experienced a net outflow of $473.9 million, primarily due to Grayscale’s ETHE outflows. Ethereum’s price showed signs of recovery, trading at $2,494 after a 13.5% increase from its low of $2,197 on August 5.

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Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should conduct their own research.