Ethereum ETF by BlackRock crosses $10 billion

Surging institutional demand has helped Ethereum ETFs outperform Bitcoin funds in inflows throughout July.

BlackRock’s iShares Ethereum ETF has reached $10 billion in assets, becoming the fastest-growing non-Bitcoin ETF in US history.

The iShares Ethereum Trust (ETHA), managed by BlackRock, has surpassed $10 billion in assets under management just over a year after launch. It now ranks as the third-fastest ETF in US history to reach the milestone, trailing only two Bitcoin-focused funds.

According to Bloomberg’s Eric Balchunas, ETHA doubled from $5 billion to $10 billion in just 10 days. July brought a notable surge in inflows, with Ethereum ETFs outperforming Bitcoin ETFs on several occasions.

So far, monthly Ethereum ETF inflows have reached $4.7 billion, with ETHA leading in volume and growth.

The rapid growth has been driven by increasing institutional demand and investor confidence in Ethereum’s long-term prospects. BlackRock filed for ETHA in late 2023 and selected Coinbase Prime as custodian.

The fund tracks Ether’s market price, charges a 0.25% fee, and may soon introduce staking following favourable SEC guidance.

Analysts say ETH’s proof-of-stake model and its role in decentralised finance have made it increasingly attractive. While Bitcoin funds still dominate total assets, Ethereum ETFs are growing faster due to more substantial DeFi exposure and the potential for staking rewards.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!