BlackRock Ethereum ETF surpasses $1B net inflows

Key Takeaways

• BlackRock's Ethereum ETF is the first US Ethereum fund to hit $1 billion in inflows.
• ETHA's performance is strong but trails behind BlackRock's Bitcoin ETF achievements.

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BlackRock’s iShares Ethereum Trust, also known as ETHA, has become the first US spot Ethereum exchange-traded fund (ETF) to achieve $1 billion in net inflows, Farside Investors’ data shows.

This marks a significant milestone, although the fund trails the initial performance of BlackRock’s iShares Bitcoin Trust (IBIT), which crossed the $1 billion mark in just four days. Despite the slower pace compared to Bitcoin ETFs, the demand for Ethereum-based funds like ETHA is growing, albeit not at the same explosive rate as its Bitcoin counterparts.

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

Investors have pulled approximately $2.5 billion from Grayscale’s ETHE since it was converted into an ETF. Similar to its Bitcoin counterpart, the fund charges relatively high fees compared to other investment options.

While ETHE has consistently seen negative flows since its debut, outflows appear to have slowed recently.

Withdrawals peaked at $484 million on the fund’s first trading day, followed by a similar pace throughout its first week, but slowed down 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, with a marginal lead in their collective holdings.

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