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- Spot Ethereum ETFs have seen net inflows for 18 straight days, totaling $5.4 billion, outpacing combined inflows from prior streaks.
- Ethereum ETFs now account for 13% of crypto ETF AUM, up from 10% two months ago, while Bitcoin’s share has dropped to 82%.
Despite the recent volatility, Ethereum (ETH) continues to draw strong institutional interest with asset manager BlackRock, scooping huge ETH supply through its iShares Ethereum Trust (ETH).
During the last week, inflows into BlackRock’s Ethereum ETF were four times that registered by its Bitcoin ETF IBIT. The largest asset manager globally has been behind the majority of the inflows in the Ethereum fund during the month of July.
BlackRock Ramps Up ETH Exposure, Buys 4x More Ethereum Than Bitcoin
During the last week, the world’s largest asset manager, BlackRock, significantly increased its exposure to Ethereum, purchasing over $1.2 billion worth of ETH, through iShares Ethereum Trust (ETHA). This is more than four times its $267 million investment in Bitcoin ETF IBIT during the same period.
Last week, the BlackRock Ether ETF also gained traction for crossing $10 billion in assets under management within a year of launch, as mentioned in our previous story. BlackRock’s iShares Ethereum Trust (ETHA) recorded a net inflow of 59,309 ETH on Monday, equivalent to approximately $223.18 million.
Furthermore, daily trading volume for the ETHA shares reached $1.1 billion. With the latest addition, BlackRock’s total ETH holdings through its spot Ethereum ETF have now surpassed 3 million ETH, as per the official iShares website.
This surge in ETH accumulation has helped extend the spot Ethereum ETF inflow streak to 18 consecutive days, matching the second-longest run since launch. Total net inflows during this period now stand at $5.4 billion, reported ETH Store President Nate Geraci.
Notably, this ongoing streak has already generated more capital than the combined inflows from the two previous longest streaks. On Tuesday, Ethereum’s net issuance today totaled approximately 2,399 ETH ($9.1 million), while spot ETH ETFs recorded net inflows of around 58,000 ETH ($219 million). This marks ETF purchases exceeding network issuance by 24 times.
Ethereum Extends Dominance in Crypto ETF Sector
Bloomberg ETF strategist Eric Balchunas noted that Ether ETFs have been steadily gaining ground on their Bitcoin counterparts in the crypto ETF sector. As per the analyst, Bitcoin ETFs now account for 82% of total crypto ETF assets under management (AUM), down from 90% just two months ago.
On the other hand, Ether ETFs have expanded their market share to 13%, reflecting rising investor interest. Despite the growth, Balchunas maintains his forecast that Ether’s share is unlikely to cross 20%.
On Tuesday, the US SEC also approved in-kind redemptions for spot Bitcoin and Ether ETFs, as reported by CNF. Institutions can now redeem or purchase spot Ether ETF shares directly using ETH, streamlining the settlement process. This development reduces the need for ETFs to sell ETH on the open market when investors exit positions, as they can now deliver ETH directly to redeeming entities.
The Ethereum price has been flirting around $3,800, after facing rejection at $4,000 last week. Following 60% upside over the past month, market analysts call this pullback a small cooldown before the Ethereum rally to $5,000 begins again.
