Key points
- BlackRock’s Ethereum ETF has amassed $901 million since launch and could soon hit $1 billion in net inflows.
- Grayscale’s Ethereum ETF remains the dominant player in the market despite intense outflows.
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BlackRock’s Ethereum exchange-traded fund (ETF), the iShares Ethereum Trust, could become the first U.S. spot Ethereum fund to hit $1 billion in net inflows. The ETF, which trades under the ticker symbol ETHA, has recorded around $901 million in net capital just three weeks after its launch and is on track to achieve the milestone, according to Farside Investors. data sample.
Nate Geraci, president of The ETF Store, is confident that ETHA will hit $1 billion in inflows this week, adding that it is one of the six most successful ETF launches of the year.
The iShares Ethereum ETF has raised over $900 million in less than 3 weeks…
We’re almost certain to hit $1 billion this week, in my opinion.
As mentioned above, ETHA is already in the top 6 launches of 2024 (4 of the other 5 are spot BTC ETFs).
– Nate Geraci (@NateGeraci) August 12, 2024
BlackRock’s fund offering direct exposure to Bitcoin (BTC), the iShares Bitcoin Trust or IBIT, was the first spot Bitcoin ETF to hit $1 billion in inflows. Thanks to massive and consistent inflows, it took just four days for the ETF to surpass the mark.
BlackRock ETF data indicates a slower accumulation rate for Ethereum compared to Bitcoin. Demand for Ethereum ETFs, while growing, has not yet reached the level of interest seen in Bitcoin ETFs. However, it is not entirely unexpected.
Martin Leinweber, director of digital asset research and strategy at MarketVector Indexes, previously said that More modest entries are expected in Ethereum ETFs compared to the substantial inflows seen with Bitcoin ETFs, which have attracted billions in a short time.
Eric Balchunas, the popular Bloomberg ETF analyst, estimated that demand for spot Ethereum ETFs could be around 15% to 20% of that seen for Bitcoin ETFs. His projection came after the historic approval of these products in May.
BlackRock’s ETHA may be the fastest-growing Ethereum ETF, but Grayscale’s competing fund, the Grayscale Ethereum ETF (ETHE), still dominates assets under management despite enduring nearly $2.3 billion in outflows since converting from a trust.
Currently, ETHE holds $4.9 billion worth of Bitcoin, while ETHA has over $761 million in assets under management (AUM). At the current rate of accumulation, ETHA could soon surpass ETHA in AUM.
There is a chance that ETHA will outperform the Ethereum ETF market, but further observations are needed, particularly when Grayscale has already offered its Ethereum Mini Trust.
The spin-off was seeded with 10% of the trust’s holdings and now has $935 million in AUMDespite the steady flow of capital into the low-cost fund, its net inflows are still modest compared to BlackRock’s ETHA inflows.
BlackRock’s IBIT has overtaken Grayscale’s Bitcoin ETF (GBTC) to become the largest Bitcoin spot fund in terms of Bitcoin holdings. As of today, the fund holds approximately 348,000 BTC, valued at around $21 billion.
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