BlackRock Stands Alone as Sole Ethereum Buyer Among ETFs
BlackRock, the largest hedge fund globally, has made a significant move by acquiring Ethereum (ETH), as reported by Arkham Intelligence. The purchase amounts to an impressive 336,058 ETH, valued at approximately $763.95 million based on data provided.
This development comes at a challenging period for Ethereum ETFs, with initial enthusiasm waning due to substantial outflows. Within just 30 days of their introduction in late July, spot Ethereum ETFs have experienced outflows nearing $480 million.
These figures underscore a lack of investor interest in these financial products, reflecting the current market challenges. A recent tweet by Arkham revealed that BlackRock was the sole ETF to acquire ETH on a particular day, emphasizing the unique nature of this transaction.
In contrast to Ethereum’s struggles, other cryptocurrencies have fared better. Since the year began, Ethereum has seen a 0.54% decrease in value, contrasting with the notable gains seen in Bitcoin and Solana, which have recorded returns of 28% and 25%, respectively. Presently, Ethereum is trading at $2,270.
Analysts attribute ETF performance issues to various factors, with the unlocking of Grayscale’s Ethereum Trust (ETHE) being a significant factor contributing to observed outflows from the fund.
Despite these challenges, there is a sense of cautious optimism among industry experts. Bloomberg Intelligence ETF analyst Eric Balchunas acknowledges the impact of the unlocking but anticipates a potential improvement in the future outlook for Ethereum ETFs as this process concludes.
