Ethereum ETF by BlackRock Aims for $1 Billion Milestone in Fund Inflows: Insights
The BlackRock iShares Ethereum Trust (ETHA) has achieved a significant milestone as it progresses towards the $1 billion mark in inflows. This milestone underscores the growing popularity of ETHA among issuers authorized to trade a spot Ethereum ETF in the United States.
Data from Farside Investors reveals that the money flowing into ETHA has surpassed $901 million at the current juncture. Consequently, BlackRock has emerged as a frontrunner among other issuers such as Fidelity Investments, Bitwise, Grayscale Investments, and VanEck in the Ethereum ETF market.
Launched on July 23, 2024, ETHA primarily enables investors to engage in Ethereum trading within a conventional brokerage account. It simplifies the process for cryptocurrency enthusiasts to directly hold Ethereum without having to navigate operational complexities like high trading costs and tax reporting obligations.
While BlackRock’s ETHA has encountered some challenging periods with minimal or no revenue since its debut, it has managed to amass a substantial influx, likely attributed to BlackRock’s reputation as a significant asset manager. As per its product information, ETHA has accumulated a total of 293,938.95 shares valued at $761,954,433.48.
With the momentum building in the spot Ethereum ETF market, many anticipate that this trend will reflect in the Ethereum price movement.
Despite the excitement surrounding the launch of its spot ETF, Ethereum’s price did not respond as expected. Although investor interest surged, the digital asset faced persistent selling pressure. Following the ETH ETF launch, Ethereum’s price, which was initially above $3,400, swiftly dropped to $2,800.
Subsequently, Ethereum’s price further declined, reaching the $2,500 mark, mainly due to institutional investors offloading their ETH holdings. However, on a daily basis, Ethereum seems to be making a slight recovery, as indicated by a 1.15% increase in price over the past day, bringing it to $2,681. The trading volume also saw a notable uptick of 66.29%, suggesting a renewed interest from investors.
