Ethereum ETF from BlackRock Surges with Over $1 Billion in Net Inflows

BlackRock’s iShares Ethereum Trust, known as ETHA, has achieved a significant milestone by becoming the first US spot Ethereum exchange-traded fund (ETF) to reach $1 billion in net inflows, according to data from Farside Investors. This accomplishment, while noteworthy, falls short of the rapid ascent of BlackRock’s iShares Bitcoin Trust (IBIT), which surpassed the $1 billion mark in just four days. Despite a slower pace compared to Bitcoin ETFs, the demand for Ethereum-based funds like ETHA is steadily increasing, albeit not at the same explosive rate as their Bitcoin counterparts.

The $1 billion milestone was reached after ETHA received $26.8 million on August 20. Data from Farside indicates that only BlackRock’s ETF and Bitwise’s Ethereum fund (ETHW) saw gains on that Tuesday, while other competitive ETFs, excluding Grayscale’s ETHE, reported zero flows.

Investors have withdrawn approximately $2.5 billion from Grayscale’s ETHE since its conversion into an ETF. Similar to its Bitcoin equivalent, the fund imposes relatively high fees compared to other investment options. While ETHE has consistently experienced negative flows since its inception, the rate of outflows appears to have slowed recently.

Withdrawals peaked at $484 million on the fund’s first trading day, maintaining a similar pace throughout its initial week but decelerating earlier this month. The lowest outflows were recorded last Wednesday at $16.9 million.

BlackRock’s Ethereum and Bitcoin ETFs have recently surpassed those of Grayscale in assets under management for the first time, holding a marginal lead in their combined holdings.

In conclusion, the rise of ETHA as the first US Ethereum ETF to achieve $1 billion in net inflows signifies a significant step in the growing investor interest in Ethereum-based funds. While the pace may not match that of Bitcoin ETFs, the steady increase in demand underscores the evolving landscape of cryptocurrency investments.