Ethereum ETF from BlackRock Attracts Over $1 Billion in Net Inflows
BlackRock’s iShares Ethereum Trust (ETHA) has achieved a significant milestone by becoming the first among the 11 US spot ether ETFs to exceed $1 billion in net inflows. Recent data from investment firm Farside indicates that ETHA received a notable $26.8 million in net inflows on Tuesday.
This accomplishment highlights BlackRock’s prominent position in the Ethereum ETF market. In terms of net inflows, BlackRock’s spot ETF currently leads the pack, with Fidelity’s FETH following at $367 million in total net inflows, Bitwise’s ETHW at $310 million, and Grayscale’s mini trust ETF (ETH) at $227 million.
BlackRock also stands out in the US spot Bitcoin ETF market, boasting $20.8 billion in assets under management (AUM). The company reached the $1 billion in net inflows threshold for its bitcoin ETF within just four days of trading, launching the ETF on Jan. 11 and hitting the milestone on Jan. 17. In contrast, BlackRock’s Ethereum ETF, ETHA, took approximately a month to reach the same milestone since Ethereum spot ETFs commenced trading on July 23.
Grayscale’s ETHE, holding $4.79 billion in net assets, has faced challenges with substantial outflows since its launch, with $2.47 billion withdrawn. These outflows have surpassed inflows, resulting in a net negative inflow of $440 million as of August 20.
The outflows from Grayscale can be attributed in part to its high management fees, which have been a point of contention among investors. With a 2.5% management fee, Grayscale’s ETHE is significantly more expensive than its competitors, prompting some investors to seek lower-cost alternatives. In response to these concerns and to provide a more cost-effective option, Grayscale introduced the mini trust ETH to attract investors seeking lower fees and a simpler investment structure.
Grayscale’s mini trust (ETH) has performed better, with a total positive inflow of $227 million and $948 million in net assets, as per data from cryptocurrency data platform SoSoValue. Despite relatively modest inflows, ETH initially had $1.02 billion seeded, explaining its substantial assets. Following Grayscale’s mini trust is BlackRock’s ETHA, which holds $864 million in net assets—more than double the assets of its closest competitor, Fidelity’s FETH.
Since the launch of the ETFs, the price of ETH has experienced a 25% decline, dropping from around $3,440 to $2,854 at the current time.
