TL;DR
- BlackRock’s Ethereum ETF, ETHA, surpasses $1 billion in net inflows, setting a U.S. record.
- ETHA received $26.8 million on August 20, but grows more slowly than BlackRock’s Bitcoin ETF, which reached the same amount in four days.
- Grayscale’s ETF, ETHE, has seen $2.5 billion in outflows, with recent withdrawal rates slowing.
BlackRock’s Ethereum ETF, known as iShares Ethereum Trust (ETHA), has surpassed $1 billion in net inflows, becoming the first U.S. ETH fund to reach this milestone. The figures represent a significant advancement for the fund, although its performance still lags behind the rapid growth experienced by BlackRock’s Bitcoin ETF, the iShares Bitcoin Trust (IBIT).
ETHA crossed the $1 billion threshold after receiving $26.8 million in inflows on August 20, 2024. Despite its success, the Ethereum fund has grown at a slower pace compared to the Bitcoin ETF, which reached the same amount just four days after its launch. The increasing demand for ETH-based funds remains notable but has not matched the explosive rate observed in Bitcoin funds.
BlackRock Dominates the Crypto ETF Market
Farside Investors’ report reveals that BlackRock ETF and Bitwise’s Ethereum fund (ETHW) were the only ones to record capital inflows on August 20, while other ETFs, excluding Grayscale’s ETHE, showed no fund flows that day.
In contrast, Grayscale’s ETHE has experienced a significant capital outflow since its conversion to an ETF, with approximately $2.5 billion withdrawn. Although ETHE has faced a continuous outflow of funds, the withdrawal rate has shown signs of slowing down. After an initial withdrawal of $484 million on its first trading day, withdrawals have reduced, with the lowest amount recorded at $16.9 million last week.
Additionally, BlackRock ETFs have surpassed Grayscale’s in terms of assets under management for the first time. There is a growing preference for BlackRock funds, which has allowed the company to solidify its position in the crypto industry.
